To Australia’s political leaders in the interwar years the task of deciding upon an appropriate defence policy for the nation seemed an almost insoluble problem. Throughout this period of two decades, however, there was a remarkable consistency in the understanding of the nature of the problem, which was identified clearly within eighteen months of the end of the First World War. This chapter describes how the leaders of the two key services, the army and the navy, sought to advise the government on a suitable defence policy. It is a reminder that the issues of strategy and command are just as important during peacetime as in war.