On 24 February 1955, Dowling succeeded Vice Admiral Sir John Collins as First Naval Member, Australian Commonwealth Naval Board, and Chief of Naval Staff (CNS). He was promoted to vice admiral on 7 June, and appointed a Companion of the Order of the Bath (CB) in the Queen's Birthday Honours two days later. On 15 June, he joined fellow chiefs of staff Lieutenant General Henry Wells and Air Marshal John McCauley, Prime Minister Robert Menzies, and senior government members in approving a draft directive for the role of the Far East Strategic Reserve (FESR); this made Commonwealth forces available for the fight against communist insurgents in Malaya, as well as for the security of Malaya and Singapore against external aggression. The Navy's contribution to the FESR was to be at least two destroyers or frigates on an ongoing basis, as well as a yearly visit by an aircraft carrier. The destroyers and , already in the region on an exercise, were immediately committed, and Dowling flew to Singapore to personally announce the plan and the reasons for it to the ships' crews.