Part IV The Commissioner found that liquor importation into the Pacific area by members of 1st TAF in RAAF aircraft was a common occurrence. From the evidence available to him these importations were small in quantity and for personal consumption. He was not able to uncover any large scale importation and sale by members of 1st TAF with the exception of Caldwell and to a lesser extent W/C Gibbes. It should be noted that the Commissioner had no authority to enquire into liquor importation and sales by American servicemen in the Pacific. As he pointed out, the mere existence of established prices for liquor in the region suggests there was an active 'black market' for liquor. Clearly this market existed before Caldwell's arrival at Morotai and he was almost certainly only a minor player in it.
General Court Martial
Court Martial proceeding were still pending against Caldwell after the adjournment of the Field Court Martial at Morotai in April 1945. It was not until the 4th of January 1946 a General Court Martial presided over by AVM S Goble was convened at No. 2 Personnel Depot, RAAF, Bradfield Park, NSW. The defending counsel asked for an adjournment to allow them more time to prepare their case. An adjournment was granted and the court reconvened on the 16th of January, 1946.
Four charges were made against Caldwell relating to selling liquor at Morotai. Each charge detailed breaches of ABO 'N' 548 constituting conduct to the prejudice of good order and air force discipline under Section 40 of the Air Force Act. The court took each charge in turn, the first was that between the 22nd of December 1944 and 15th February 1945 he sold liquor through the agency of Cpl. Parker.
The evidence against Caldwell was essentially the same as had been submitted in the Royal Commission, in particular the testimony of Cpl Parker, LAC Charter and F/O Schweppes. There was little the defending counsel could do to disprove the facts of the case as Caldwell had already admitted his involvement in liquor sales with his batman Parker.
Their defence was based on showing to the court that breaches of ABO 'N' 548 by others senior to Caldwell were such as to abrogate the applicability of the order. These events were outlined in a written statement by Caldwell that was submitted to the court. As the prosecution pointed out, much of the content of this statement was irrelevant to the charge before the court. Portions of the statement relating to importation of liquor by senior officers were the same ones that the Commissioner investigated as part of the Royal Commission. Part of the statement read, 'I have heard the Chief of Air Staff (Air Vice Marshal Jones) say himself that he had been informed that his own personal Pilot (Squadron Leader Upjohn) had taken liquor on the C.A.S’s aircraft on occasions between August 1944 and May 1945 when he had been making duty flights to areas outside Australia including 1st T.A.F. However, the Chief of the air Staff made no enquiries of Squadron Leader Upjohn, nor did he direct any investigation into the allegation, nor did he have communication with Squadron Leader Upjohn’s Commanding Officer. To my mind that indicates pretty clearly the real importance attached by the highest ranking Air Force Authority of importing liquor from Australia to the Islands and having sold it'.
To explain his actions, defending council called the highest ranking officer in the RAAF, AVM Jones, Chief of Air Staff to appear before the court. He proved to be a most reluctant witness, loath to answer any questions put to him. He did however confirm that he had been advised by his personal assistant S/L Palmer, of a rumor that Upjohn had transported liquor for sale into the Pacific area between August 1944 and April 1945. Upon hearing this, Jones admitted he did not enquire into the matter or ask Upjohn for an explanation.
It was also argued that Caldwell's conduct did not actually prejudice good order and air force discipline. To this end they had witnesses testify to the high discipline of Caldwell and the Wing under his command. This interpretation was challenged by the prosecution who pointed out that the charge under Section 40 did not hinge on proving actual prejudice to discipline but that the conduct had a tendency to have this effect. Further to this, given the nature of the transaction, any liquor sales would have been made in secret and since no one knew other than the participants to the transaction, it could not therefore have had any effect on good order and air force discipline.
Given that Caldwell admitted involvement in the sale of liquor through the agency of his batman Corporal Parker, the facts were for the most part not in dispute. The question was whether these circumstances amounted to conduct to the prejudice of good order and air force discipline. By the term 'good order', it is meant conduct that is not right and proper judged by the standards of the general community to which the air force belongs. There is little doubt that Caldwell's conduct was not right and proper but it must also be shown to prejudice air force discipline. Defending council presented witnesses who testified to the high discipline of Caldwell and the Wing in which he commanded. As mentioned in the Royal Commission instances of breaches were presented to try and prove an abrogation of the 'N' order. In his report the Royal Commissioner preempted the decision of the court. Essentially Caldwell's breach of the 'N' order was in a different class to those other breaches given in evidence. As the Commissioner and Judge Advocate pointed out, breaches of the 'N' order involving importation of liquor for personal consumption or to give away is in a different category to importation and sale of liquor. The former while technically a breach of the 'N' order, does not constitute an offence under section 40 while the latter, being of a different character, is a breach that in the circumstances does constitute an offence.
On the 18th of January the Court found Caldwell guilty of the first charge. Following the verdict the prosecution advised the court it would not proceed with the second and third charges, leaving only the fourth charge to be dealt with. Caldwell and his defending counsel knew there was little point fighting the last charge given the adverse finding on the first, so Caldwell simply pleaded guilty to the charge. He was sentenced to be reduced in rank to Flight Lieutenant. This sentence was however not as severe as it first appears; Caldwell held the rank of Acting Group Captain with a substantive rank of Squadron Leader; only one step above Flight Lieutenant.
At the time charges were first laid against him at Morotai, Caldwell suggests in his minute to Cobby that the proceedings against him were motivated in a quest to make an example of him and seemed venal in nature and discriminatory. Commissioner Barry could find no evidence to support this but the question still remains as to why charges were persisted with well after the end of the war. After the Barry Commission, there probably would have been ill feelings towards Caldwell by some sections of the air force and government. Whether this was a factor in the decision to proceed with the court martial is a matter of conjecture that is unlikely to ever be resolved.
Closure
A month after his court appearance, Caldwell left the RAAF and returned to civilian life. The Court Martial and Royal Commission did not have any long lasting effect on the RAAF; apart from some negative press comment at the time it was soon forgotten by the public as their thoughts centered on the promise and challenges of peace. As for Caldwell, the personal skills that helped make him such a successful fighter pilot and leader during the war were applied with equal success in the world of commerce. Although his conduct on Morotai was by any standard inappropriate, it can not erase or tarnish his significant contribution to the war effort.