In June 1940 the Australian War Cabinet voted money for the development of an aeroplane for the RAAF which was capable of dive-bombing, torpedo carrying, general bombing and reconnaissance duties.

Gianni Caproni (1886 – 1957) designed and built his first aeroplane, known as the Ca.1, in 1910 and went on to have a long and distinguished career in aviation, his achievements including designing bombers for the Italian Air Force, his design the Ca.3 being built also in the United States,

Leichtflugzeugbau Klemm Gmbh of Boblingen, Wurtemberg, was the successor to the Daimler-Werke AG which first produced light aircraft in 1919.

In October 1921 Mr Alan S Butler approached the de Havilland Company with a view to it building an aircraft to his specifications

The Eagle was designed as a high-performance low-wing cabin monoplane of wooden construction seating a pilot in front and two passengers side-by-side in the rear and was fitted with a manually-operated outward retractable undercarriage.