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It would appear they were first put into common use by the military during the Boer War:)
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Around the end of WW1, although soldiers frequently wore pocket watches on their wrists during the Boer War. http://www.qualitytyme.net/pages/rolex_articles/history_of_wristwatch.html
The old memory banks failing Vultan? Seem to recall this one a couple of years ago ... ha ha http://iq.lycos.co.uk/qa/show/4732/Did+the+wrist-watch+replace+the+pocket-watch%...
Two excellent answers and an unhelpful...