The first recorded use of the Southern Cross in a flag design is recorded in Messrs. Shaw Savill Co.’s Log, June, 1836. It is stated therein that the House Flag of Messrs. Shaw Savill and Company, a flag showing the red St. George Cross in a white field with the Southern Cross in the fly, was selected on the 30th March, 1834, at a meeting of Maori Chiefs at Bay of Islands as the New Zealand National Flag. This flag was superseded by the Union Jack when the Sovereignty of New Zealand was ceded to Queen Victoria. under the treaty of Waitangi, February, 1840.

Britannic Majesties, Queen Victoria, Edward VII, and George V, in succession, were, for half-a-century, to be served in the South Pacific by vessels-of-war wearing either the White Ensign or a Blue Ensign including in its design the Southern Cross. All vessels bore the title ‘Her’ or ‘His’ Majesty’s Ship-of-war.

The vessels flying the White Ensign were Their Majesties’ ships under Admiralty control, built and maintained at the cost of the British taxpayer. Those flying an Ensign usually showing in its design the Southern Cross were Their Majesties’ vessels-of-war under the orders of British Colonial Governments, having been built and maintained by Colonial taxpayers, or presented by the Admiralty.

Paradoxically, these latter vessels wore flags unrecognised by International Law and, outside their own three-mile limit areas, presumably had the status of pirates!

No official liaison was maintained between Their Majesties’ ships-of-war wearing these different flags. The Colonial Navies were not then honoured with the title ‘Royal.’ The bewilderment of the student at this extraordinary situation is not lessened when it is realised that yacht clubs, hospitals and patriotic bodies received Royal patronage in generous measure for generations, and were granted the privilege of bearing the prefix ‘Royal’ in their titles. It was not until the period of full recognition of the independent national status of the various Dominions had been established for several years that the Dominion forces received this title, also the privilege of wearing the White Ensign. This was finally granted to vessels who for long years had received recognition by the Britannic Sovereign as Her or His Majesty’s Vessels of war.

The dignity and prestige acquired by the extension of this privilege to the infant Colony Navies would have given the stimulation that Admiralty action already had indicated their Lordships were anxious to develop.

It cannot be questioned that the First Lord of the Admiralty, the Right Hon. H. C. Childers, M.P., having in mind his experience when in Australia regarded Australia’s naval defence as a duty in which the people were prepared to undertake responsibility, with support from the Admiralty. Under his influence the British Parliament passed a Naval Defence Act, ‘The Act to make better provision for the naval defence of the Colonies.’ This Act gave power to the Colonies generally to buy vessels, raise men and commission officers, the Admiralty being authorised to accept any offer by a Colony to place its vessels and personnel at the disposal of the Sovereign.

With the establishment of naval forces arose the question of a flag to distinguish the infant navy vessels. The White Ensign, adopted by all Admiralty vessels in 1864, had not yet been granted as a distinguishing flag to vessels of Her Majesty’s Colonial Fleets. A distinctive flag was required.

The Admiralty’s recommendation to the Colony of Victoria is indicated in the following extract from the Naval and Military Gazette, 30th April, 1870. In this Gazette appears the first official reference to the use of the Southern Cross in an Australian flag’s design.

The Navy of the Colony of Victoria had then received full Admiralty recognition, the ships operating on a sound official basis as vessels-of-war maintained and controlled under the Colonial Government.