There were many claims about Siamese gifts from Royalty however in 1904, King Chulalongkorn offered $1000 reward for a missing Palace Cat  which turned up in America.
King of Siam 1853-1910	Original newpaper artical published August 22, 1904

There have always existed two types of Siamese - Semi-longhaired variants appeared occasionally in purebred Siamese litters. The recessive nature of the longhair gene means it can be carried for many generations without surfacing. 
Chinese tapestries depicting pointed longhairs, and 19th century paintings, indicate that cats carrying the long hair recessive gene were imported with the first Siamese cats.

The first "Long-hair Siamese" registered with the Cat Fanciers Federation was in 1928.  This was a spontanious occurance in a litter of purebred siamese cats.  Controled breedings of long-hair siamese to other long-hair "persian"  type cats began almost simultaniously in Europe and America. (note to aviod confusion, that before the Persian breed of cat was developed, long hair cats in general were called "persian"). Dr K Tjebbes (Sweden) began the first documented Siamese - Persian breedings. These early long haired Siamese were foundation to the Himilayan Breed.  

The Balinese however is a cat of pure Siamese breeding with no other out cross appearing in it's ancestry.  In 1935 Dr Clyde E Keeler and fancier Verginia Cobb (Newton Cattry) began breeding and registering the long hair Siamese (genetic "Balinese") with the American Cat Association, however they were not bred widley until the mid 1950's when Marion Dorsey and Helen Smith of the Cat Fanciers Association began breeding and showing the long-haired Siamese in the US.   

Much efforts to bring the Balinese to champion status came from members of the CFA and were pioneered by Sylvia Holland of Holland's Farm Cattery.  Initially regarded as a natural occurance within the Siamese genetic or a mutation, Holland advocated to various breed clubs to distinguish the Balinese as a breed unto itself, though the various breed clubs still allow for the breeding back of the Balinese to the Siamese. 

Long hair is a recessive quality and the long-haired Siamese bred true. To keep it separate from the conventional shorthaired Siamese it required a new title. "Balinese" was coined by Helen Smith of the Cat Fancier's Association to reflect the grace, like that of Balinese dancers, and also because Bali is close to Thailand, to reflect the close ties to it's Siamese ancestors. In 1961 the Balinese was accepted in the CFA and registered in the same point colours as Siamese: seal, chocolate, blue and lilac.  It was almost two decades later before the Balinese was recognised in the UK and was accepted to the International Cat Association in 1979.  Though the first "Balinese" were registered between 1961 - 1979, the lines trace back much farther through the Siamese ancestry, when what could only be called "long haired Siamese" occasionally occured in pure bred Siamese litters.  Previously these long haired cats were quiety placed as pets as there was no classification in which to show a long hair varient until the Balinese was awarded breed status and recognition apart from the conventional short hair Siamese.

The development of the Balinese paralleled that of the Siamese. In the 1950s most Siamese and Balinese cats were less extreme than many of the modern show type Siamese of today. The extreme type gained in popularity for the Siamese and its longhaired counterpart followed suit since Balinese were bred back to Siamese frequently either to improve the type of the Balinese or to bring in diverse genetics. As with the Siamese, a few breeders preserved the older style which has remained popular outside of the show ring and in the homes of families around the world.

In order to preserve the Siamese type long hair Siamese are now registered as Balinese in most breed associations when they occur in pure bred Siamese litters.  Short hair Balinese who carry the long hair recessive are frequently registered as "Balinese - short hair varient" to distinguish them from their Siamese cousins.

These old style long and short hair Siamese cats layed the genetic foundation for many modern Oriental type breeds and many varietions in colour points - including the Himilayans, Javanese, Snowshoe Siamese and many others.   Different breed clubs also developed various interpretations of the Siamese standard, each creating their own "ideal" Siamese type. 

Cat Fancier's Association Standard for the Siamese Cat 1952

Balinese Breeders and Fans of America proposed breed standard 1967

ACA Standard Revised 1997

TICA Standard for the Siamese Cat 2008

TICA Standard for the Thai 2009 - TICA's old-style Siamese