The requirement to replace the Avon Sabre arose early in the era of the US Century Series fighters when level supersonic flight became commonplace and a Mach 2 capability was regarded as a standard for a combat fighter aircraft. US-built aircraft of this calibre were the F-104, F-105 and F-106. In Europe, promising comparable aircraft were the English Electric Lightning, the Swedish Draken and the French Mirage III.
As a Sabre replacement, the F-105 and F-106 were disadvantaged on grounds of cost and complexity and the Lightning, although a sparkling performer with a high thrust/weight ratio, was at the time essentially a point defence interceptor; it was severely fuel limited and displayed little potential for further development. The F-104 was in service with the USAF and had been selected by the Belgian Air Force. The Draken was powered by the latest Rolls Royce engine coupled to a new Swedish afterburner. The airframe featured a unique 'double delta' design which promised, as well as Mach 2, extremely good low speed handling characteristics and consequently reduced runway requirements. It was, however, early days for the Draken which at the time was little developed from the prototype stage.
In December 1959 Wing Commander L.S. Compton (RESENG London) and Flying Officer G.W. Talbot (RAAF Exchange at RAF Boscombe Down) were tasked to visit France, Belgium, and Sweden to evaluate and report on some of the contenders for the Sabre replacement. A long report was prepared by the two-man team, not only on flight aspects, but on other areas of purchase interest; engineering, maintenance, costs and financing, potential for license production, delivery schedule, etcetera, etcetera. On completion of the European aircraft evaluation, Wing Commander Compton and Flying Officer Talbot returned, each to his respective job in the UK, with no further involvement in the Sabre replacement selection process.
Following this initial appraisal, a Fighter Evaluation Team toured Europe and the US from May-August 1960. The Team initially examined five aircraft; the Republic F I05, English Electric Lightning, Northrop N156 (later to become the F5), Mirage III and F104G. The choice for a replacement for the Avon Sabre was later narrowed to the Lockheed F104G and the French Mirage III.
The Team concluded that the Mirage III was suitable for the RAAF requirement. The F104G was considered unsuitable for a number of important reasons; the principal objection being that the F104 required airfields of a standard which did not, at the time, exist in sufficient number in the Australian area of interest. Other reasons included; aircraft handling qualities, engine reliability, ferry range and cost.