In 1931 Casey returned to Australia and was elected to the
House of Representatives as
UAP MP for the
Geelong-based seat of
Corio. Prime Minister
Joseph Lyons appointed him an assistant minister in 1933, and in 1935 he became Treasurer.
In 1939
Robert Menzies became Prime Minister for the first time. He saw Casey as a rival, and moved him to the lesser portfolio of Supply and Development. In 1940 Menzies appointed Casey as the first Australian Ambassador to the
United States. This was a vital posting in wartime, but it also served to get Casey out of domestic politics. Casey was in
Washington when the United States entered the war, and played an important role in establishing the alliance between the United States and Australia.
Casey moved to
Cairo in 1942 when
Winston Churchill appointed him
Minister Resident in the Middle East to the annoyance of Prime Minister
John Curtin and some in the
British Foreign Office. In this role he played a key role in negotiating between the British and Allied governments, local leaders and the Allied commanders in the field. In 1944, when the
Middle East ceased to be a military theatre, the British government appointed Casey
Governor of Bengal, a province of
India. Casey held this post until 1946.
In 1946 Casey returned to Australia in the hope of being elected to parliament in the
1946 election and becoming the leader of the new
Liberal Party that Menzies had formed in 1944, as part of his reorganisation of conservative politics in Australia. Casey had turned down the offer of a
British peerage to preserve his political chances. However, he was too late to organise his pre-selection for a seat. He was persuaded to become Federal President of the Liberal Party in September 1947 and proved to be a very effective fund raiser, partly as a result of his past social and business connections. Although Menzies still saw Casey as a rival, and although Casey undoubtedly saw himself as a future Prime Minister, they formed an effective partnership.
The Liberals won the
1949 election, and Casey returned to the House of Representatives as MP for the outer Melbourne seat of
La Trobe. Menzies appointed him Minister for Supply and Development. In 1951, when the
Minister for External Affairs, Percy Spender (another Menzies rival), was dispatched to the Washington embassy, Casey succeeded him. Casey held the External Affairs post during the height of the
Cold War, the
Suez Crisis, the war in
Indo-China and other major world events. He formed close relations with
Anthony Eden, John Foster Dulles and other leaders. Casey was also Minister in charge of the
Commonwealth Scientific and Industrial Research Organisation from March 1950 to his retirement and he was committed to its success.
Casey retired in 1960 and took up his new position in the British
House of Lords. He was appointed to the executive of the CSIRO in 1960.