The establishment and expansion of security and intelligence agencies in Australia owed a great deal to the fear of communism and its influence in the trade union and labour movements (Horner 2014; Blaxland 2015; Toohey and Pinwill 1989; Hocking 1993). Previous threatening movements, such as Irish nationalism, were mainly dealt with by old-fashioned police forces using old-fashioned invigilation techniques and a special branch. Each colonial or state police force acted on its own, with limited rights of interstate extradition validated by a judge. With varying degrees of corruption or criminal influence from place to place and time to time, the chance of controlling professional criminals was limited, let alone the search for agents of a foreign power. Prior to World War II most foreign countries were only represented in Australia by consuls. The two major fascist powers, Italy and Germany, sought consciously to recruit support from their diasporas (Cresciani 1980; Gumpl and Kleinig 2007). Now there are over a hundred fully staffed embassies in Canberra. Some represent countries that are at war with each other, either formally or in effect, and who may be spying on each other.

The failed attempt to outlaw the Communist Party began the founding of the Australian Security Intelligence Organisation (ASIO), the main organization concerned with communist activities (Horner 2014). The abortive Victorian Royal Commission on the party reached few significant conclusions. Although the Communist Party was quite small in 1950 it had a complex web of organizations and influences well beyond that of most state police forces. None of its members attempted terrorist violence. Its support for the Soviet Union and its satellite states led to a consistent loss of support after 1945. Communists were among those passing information on to the Soviet Union, but they were not alone (McKnight 1994). ASIO was founded because of American concern that the Commonwealth was infiltrated by Soviet agents and sympathizers. This led to direct pressure from the United States for a remedy (Horner 2014; Cain 1983, 2008). A major American concern was with the communication systems in the South Pacific, based on Western Australia and the Northern Territory. US influence was persistent. However, the security problems faced by Australia were relatively modest. Protection of US communications was undoubtedly important.