On 17 October 1936, with the encouragement of the Government of Australia, three companies came together to form a joint venture, registered as the Commonwealth Aircraft Corporation (CAC), which had the initial goal of assessing the viability for developing a self-sufficient aircraft industry in the nation. Early on, CAC set about planning for the establishment of both engine and aircraft manufacturing and testing facilities at Fishermans Bend, Melbourne, Victoria, purchasing tooling and equipment from manufacturers in both Britain and the United States. The newly formed company quickly decided that it would initially pursue the development and production of a single-engine armed advanced trainer aircraft, which would likely be a licence-built version of an existing aircraft. An investigation of various European and American-sourced aircraft was conducted to judge candidate designs for suitability.