The Government sent Creswell to London in 1906 to discuss his proposals and to study naval development but the Committee of Imperial Defence declared that Creswell's proposed navy would have no 'strategic justification' and, indeed, would be a 'misapplication of naval power, opposed to every sound principal of naval strategy'.

Naturally Creswell was disappointed with the ridicule levelled at his well-concieved plan but he was far from demoralized and on his return to Australia was encouraged by the then Prime Minister Alfred Deakin, who budgeted 250,000 pounds for expenditure on coastal defence including harbours.

However in 1908 Andrew Fisher took over from Deakin and he had other plans for the 250,000. he was no less enthusiastic than Deakin for the development of Australia's own navy and his cabinet immediately approved a recommendation by Creswell for the procurement of 24 destroyers, three of which were ordered immediately without Admiralty consultation.

They were River Class Torpedo Boat-Destroyers of 700 tons with a top speed of 28 knots and were named Parramatta, Yarra and Warrego - The first new vessels destined soon to bear the proud prefix HMAS. Parramatta was launched in February 1910 and, with Yarra, arrived in Australia nine months later. meanwhile a tender had been accepted for the building in Britain of the battle-cruiser Australia destined to become flagship of the fleet.

Influenced no doubt, by the enormous expenditure which would be required over some years to establish the navy, the Australian Government appointed an ex-Royal Navy officer, Admiral Sir Reginald Henderson, as a consultant. henderson submitted a paper in March 1911 which proposed a massive fleet for that time of 52 warships, 15,000 men and six major bases, to be attained over two decades. It was far too ambitious for the financial resources of Australia with a population of less than 5 million. Never the less some aspects were adopted. Also on Henderson's recommendation the Naval Board was restructured in March 1911 as follows. Minister for Defence, President, Rear Admiral William Creswell, First Naval Member; Captain Bertram Chambers, Second Naval Member; Engineer Captain William Clarkson, Third Naval Member; and Staff Paymaster Henry Manisty, Finance and Civil member and Naval Secretary.

It was a momentous occasion for Australia when on 10 July 1911, King George V approved the designation 'Royal Australian Navy'. The Naval Board finally promulgated the new designation on 5th October 1911 and pronounced that henceforth Australian Naval vessels were to be prefixed with the words "His Majesty's Australian Ship" (HMAS). The board also ordered that all naval ships were to fly the White Ensign at the stern and the Australian flag at the jackstaff. And so a proud Navy was born!