Douglas MacArthur
General Headquarters

On 18 April 1942, MacArthur was appointed Supreme Commander of Allied Forces in the Southwest Pacific Area (SWPA). Lieutenant General George Brett became Commander, Allied Air Forces, and Vice Admiral Herbert F. Leary became Commander, Allied Naval Forces. Since the bulk of land forces in the theater were Australian, George Marshall insisted an Australian be appointed as Commander, Allied Land Forces, and the job went to General Sir Thomas Blamey. Although predominantly Australian and American, MacArthur's command also included small numbers of personnel from the Netherlands East Indies, the United Kingdom, and other countries.

MacArthur established a close relationship with the prime minister of Australia, John Curtin, and was probably the second most-powerful person in the country after the prime minister, although many Australians resented MacArthur as a foreign general who had been imposed upon them. MacArthur had little confidence in Brett's abilities as commander of Allied Air Forces, and in August 1942 selected Major General George C. Kenney to replace him. Kenney's application of air power in support of Blamey's troops would prove crucial.

The staff of MacArthur's General Headquarters (GHQ) was built around the nucleus that had escaped from the Philippines with him, who became known as the "Bataan Gang". Though Roosevelt and George Marshall pressed for Dutch and Australian officers to be assigned to GHQ, the heads of all the staff divisions were American and such officers of other nationalities as were assigned served under them. Initially located in Melbourne, GHQ moved to Brisbane —the northernmost city in Australia with the necessary communications facilities—in July 1942, occupying the Australian Mutual Provident Society building (renamed after the war as MacArthur Chambers).

MacArthur formed his own signals intelligence organization, known as the Central Bureau, from Australian intelligence units and American cryptanalysts who had escaped from the Philippines. This unit forwarded Ultra information to MacArthur's Chief of Intelligence, Charles A. Willoughby, for analysis. After a press release revealed details of the Japanese naval dispositions during the Battle of the Coral Sea, at which a Japanese attempt to capture Port Moresby was turned back, Roosevelt ordered that censorship be imposed in Australia, and the Advisory War Council granted GHQ censorship authority over the Australian press. Australian newspapers were restricted to what was reported in the daily GHQ communiqué. Veteran correspondents considered the communiqués, which MacArthur drafted personally, "a total farce" and "Alice-in-Wonderland information handed out at high level".
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