Operations Instructions Number 21 of 20 October 1942 for transportation of troops, weapons, and supplies in a regular transport service between Milne Bay and Oro Bay, New Guinea between 18 December 1942 and June 1943 in order "to cover reinforcement, supply, and development of the Buna-Gona area upon its anticipated capture" by the Australian 7th Division and the United States Army's 32d Division.
Over 50 air raids were experienced in the first six months and construction of wharves were started in mid 1943 as Operation Lilliput itself was coming to a close, and eight docks, some capable of supporting larger ships, were available by the first of August.
Their Australian crews rigged sails when the engines broke down, and made emergency repairs when the hulls were punctured with bullets or jagged coral" had landed elements of the invasion force and provided logistical support—and "moved at night through uncharted waters, marking reefs with empty oil drums and keeping records of observations and soundings, which were later used in charts" after hiding in rivers by day.
[11] The initial luggers and small ships "surveying" the route as they carried supplies were later augmented by HMAS Paluma, the 45 ton former examination vessel at Thursday Island,[Note 1] that began actual surveys to find a reliable approach for larger vessels from Milne Bay to supply troops landed by air near Cape Nelson.
In addition to surveys, the vessel was to install lights, land shore parties for reconnaissance, establish radio stations and pilot ships through discovered channels.
By the time troops had been airlifted in and secured the area on 5–6 October Paluma had completed survey of a route and supplies began to arrive by water.
By early November, Paluma had found a route for large ships around Cape Nelson whereupon the larger vessels discharged at Porlock with the luggers concentrating on transport forward from there.
The hydrographic section in the RAN learned of the local effort and lent assistance with surveys by HMAS Warrego, Stella and Polaris assisting, establishing safe passage for large ships from Milne Bay to Cape Nelson while Paluma worked the route forward to Oro Bay by December making the arrival of tanks possible starting on 11 December 1942 aboard Karsik.
[12][13] The urgent need for buildup of logistical support and supplies for the campaign and a base for future operations forced risking larger ships in these hazardous waters.
[20] Concurrent with Lilliput was Operation Accountant, the transport of elements of the 162nd Regiment of the United States 41st Division to Buna-Gona, that involved some of the same ships and escorts.
Final negotiations between the War Shipping Administration (WSA) and the Dutch government resulted in their being placed under U.S. Army control through a complex charter arrangement in which the British Ministry War Transport (BMWT) chartered the KPM vessels, manned by Dutch officers and Indonesian crew, and jointly with WSA allocated them to the Southwest Pacific Area command's U.S. Army Services of Supply (USASOS) with the stipulation they be under total control of the U.S.
[22] In a footnote, Gill lists the Lilliput vessels as below with the U.S. Army assigned "X" numbers[Note 3] in parentheses added from Masterson's Appendix 30.
In the same raid the U.S. Army bareboat chartered ship Masaya, an ex-World War I destroyer and banana boat converted as a fast transport, was hit and sunk 5 miles (8.0 km; 4.3 nmi) to the east.