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Edward involved himself heavily in discussions over army reform, the need for which had become apparent with the failings of the Second Boer War.
He supported the re-design of army command, the creation of the Territorial Army, and the decision to provide an Expeditionary Force supporting France in the event of war with Germany.
Reform of the Royal Navy was also suggested, partly due to the ever-increasing Naval Estimates, and because of the emergence of the Imperial German Navy as a new strategic threat.
Ultimately a dispute arose between Admiral Lord Charles Beresford, who favoured increased spending and a broad deployment, and the First Sea Lord Admiral Sir John Fisher, who favoured efficiency savings, scrapping obsolete vessels, and a strategic realignment of the Royal Navy relying on torpedo craft for home defence backed by the new dreadnoughts.
Edward lent support to Fisher, in part because he disliked Beresford, and eventually Beresford was dismissed.
Beresford continued his campaign outside of the navy and Fisher ultimately announced his resignation in late 1909, although the bulk of his policies were retained.
The King was intimately involved in the appointment of Fisher's successor as the Fisher-Beresford feud had split the service, and the only truly qualified figure known to be outside of both camps was Sir Arthur Knyvet Wilson, who had retired in 1907.
Wilson was reluctant to return to active duty, but Edward persuaded him to do so, and Wilson became First Sea Lord on 25 January 1910.

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