19th century and the first half of the 20th century, on imperial fortress colonies (originally Bermuda, Gibraltar, Halifax (Nova Scotia), and Malta). These areas permitted Britain to control the Atlantic Ocean and Mediterranean Sea. Control of military forces in Nova Scotia passed to the new Government of Canada after the 1867 Confederation of Canada and control of the naval dockyard in Halifax, Nova Scotia was transferred to the Government of Canada in 1905, five years prior to the establishment of the Royal Canadian Navy. Prior to the 1920s, it was presumed that the only navies that could challenge the Royal Navy belonged to nations on the Atlantic Ocean or its connected seas, despite the growth of the Imperial Russian and United States Pacific fleets during the latter half of the 19th Century. Britain relied on Malta, in the Mediterranean Sea, to project power to the Indian Ocean and western Pacific Ocean via the Suez Canal after its completion in 1869. It relied on friendship and common interests between Britain and the United States (which controlled transit through the Panama Canal, completed in 1914) during and after the First World War, and on Bermuda, to project power the length of the western Atlantic, including the Caribbean Sea and Gulf of Mexico. The area controlled from Bermuda (and Halifax until 1905) had been part of the North America Station, until the 1820s, which then absorbed the Jamaica Station to become the North America and West Indies Station. After the First World War, this formation assumed control over the eastern Pacific Ocean and the western South Atlantic and was known as the America and West Indies Station until 1956. In 1921, the ambitions of Imperial Japan and the threat of the Imperial Japanese Navy, resulted in the decision to construct the Singapore Naval Base. During this period, naval warfare underwent a comprehensive transformation, brought about by steam propulsion, metal ship construction, and explosive munitions. Despite having to completely replace its war fleet, the Navy managed to maintain its overwhelming advantage over all potential rivals. Owing to British leadership in the Industrial Revolution, the country enjoyed unparalleled shipbuilding capacity and financial resources, which ensured that no rival could take advantage of these revolutionary changes to negate the British advantage in ship numbers. In 1889, Parliament passed the Naval Defence Act, which formally adopted the 'two-power standard', which stipulated that the Royal Navy should maintain a number of battleships at least equal to the combined strength of the next two largest navies. The end of the 19th century saw structural changes and older vessels were scrapped or placed into reserve, making funds and manpower available for newer ships. The launch of HMS Dreadnought in 1906 rendered all existing battleships obsolete. The transition at this time from coal to fuel-oil for boiler firing would encourage Britain to expand their foothold in former Ottoman territories in the Middle East, especially Iraq.