My above post in 2011 was based on information obtained from the Peter Hancock book "Cornwall at War". However 959 Squadron, the RAF Squadron that operated Falmouth's balloon barrage from 1940-1944, show in their records that Squadron HQ was at the Gwendra Hotel on Cliff Road.
Gwendra Hotel advert 1933.jpgGwendra now.jpg
The left hand photo is an advert for the hotel from a 1933 town guide. The right hand photo shows the building that currently stands on the site.