The Australian Government of Ben Chifley was pressured by its allies to address security shortcomings at the beginning of the Cold War.

Serious charges had been made by the Army's Commander-in-chief, General Thomas Blamey, that Wake was an incompetent, used "lewd" women as agents and had lost the trust of Australia's American allies.

Wake was responsible for appointing key agents to spy on the Russian Club in Sydney that eventually led to the Petrov Defection.

During the formation of ASIO Wake worked very closely with the MI5 liaison officer, Courtney Young, who took snuff and wore spats.

Reed and ASIO were supported by the new Prime Minister, Robert Menzies after the 1949 election and he received warm tributes at the end of his post in July 1950 from both sides of politics.

In 1959, he was judge in the controversial trial of Max Stuart, an Aborigine accused of murdering a 9-year-old girl and subsequently also appointed to the Royal Commission into the conviction.