The Secret War: Spies, Codes and Guerrillas 1939–1945

Such an episode was almost everyday fare for Moravec. He was a passionate, fiercely energetic figure of middling height. A keen game-player, especially of chess, he spoke six languages fluently, and could read some Latin and Greek. In 1914 he was an eighteen-year-old student at Prague University, with aspirations to become a philosopher. Conscripted into the Austro-Hungarian army, like most Czechs he was unwilling to die for the Hapsburgs, and once at the front seized the first opportunity to desert to the Russians. He was wounded under their flag in Bulgaria, and finished the war with a Czech volunteer force on the Italian front. When Czechoslovakia became an independent state he gratefully cast off these tangled loyalties, to become an officer in its new army. He joined the intelligence branch in 1934, and took over as its chief three years later. Moravec learned the trade mostly from spy stories bought off bookstalls, and soon discovered that many real-life intelligence officers traffic in fiction: his predecessor’s supposed informants proved to have been figments of the man’s imagination, a cloak for embezzlement.

The colonel devoted much of his service’s resources to talent-spotting in Germany for informants, each network painstakingly ring-fenced. He set up a payday loan company inside the Reich, targeted at military and civil service clients. Within a year ninety of the bank’s representatives were roaming Germany, most bona fide employees, but some of them intelligence personnel who identified borrowers with access to information, vulnerable to bribery or blackmail. The Czechs also pioneered new technology – microdot photography, ultra-violet rays, secret writing and state-of-the-art wirelesses. Moravec was plentifully funded, a recognition of his role in his nation’s front line, and was thus able to pay a Luftwaffe major named Salm 5,000 Reichsmarks – about £500 – as a retainer, and afterwards the huge sum of a million Czech crowns – £7,500 – for Göring’s air force order of battle. Salm, however, flaunted his new-found wealth, and found himself arrested, tried and beheaded. Meanwhile other people’s spies were not idle in Czechoslovakia: Prague’s security officers arrested 2,900 suspects in 1936 alone, most of them allegedly acting for Germany or Hungary.

Every major nation probed the secrets of others in the same fashion, using both overt and covert means. After Russia’s Marshal Tukhachevksy visited Britain in April 1934, he conveyed personally to Stalin a GRU agent’s description of the RAF’s new Handley Page Hampden bomber, detailing its Bristol and Rolls-Royce engine variants and attaching a sketch showing its armament:

The Abwehr somehow laid hands on the 1935 fixture list of an ICI plant’s football team, which in the course of the season played at most of the company’s other British factories; Berlin thus triumphantly pinpointed several chemical installations the Luftwaffe had hitherto been unaware of. The Australian aviator Sidney Cotton conducted some pioneering aerial photography over Germany at the behest of MI6’s Wing-Commander Fred Winterbotham. The summer roads of Europe teemed with young couples on touring holidays, some of whom were funded by their respective intelligence services, and displayed an unromantic interest in airfields. MI6 sent an RAF officer, designated as Agent 479, together with a secretary to assist his cover, on a three-week spin around Germany, somewhat hampered by the facts that Luftwaffe station perimeters seldom adjoined autobahns, and neither visitor spoke German. The airman had originally planned to take his sister, who was fluent, but her husband refused consent.

In the Nazis’ interests, in August 1935 Dr Hermann Görtz spent some weeks touring Suffolk and Kent on a Zündapp motorbike, pinpointing RAF bases with pretty young Marianne Emig riding in his sidecar. But Emig tired of the assignment, or lost her nerve, and Görtz, a forty-five-year-old lawyer from Lübeck who had learned English from his governess, felt obliged to escort her back to Germany. He then returned to collect a camera and other possessions – including plans of RAF Manston – that the couple had left behind in a rented Broadstairs bungalow. Unluckily for the aspiring masterspy, the police had already secured these incriminating items, following a tip from the spy-conscious landlord. Görtz found himself arrested at Harwich and sentenced to four years’ imprisonment. He was released and deported in February 1939; more will be heard of Hermann Görtz.

For probing neighbours’ secrets, every nation’s skirmishers were its service officers posted to embassies abroad. Prominent among Berlin military attachés was Britain’s Colonel Noel Mason-MacFarlane. ‘Mason-Mac’ was shrewd but bombastic. One day in 1938, he startled an English visitor to his flat by pointing out of the window to the spot where Hitler would next day view the Wehrmacht’s birthday parade. ‘Easy rifle shot,’ said the colonel laconically. ‘I could pick the bastard off from here as easy as winking, and what’s more I’m thinking of doing it … With that lunatic out of the way we might be able to get some sense into things.’ Mason-MacFarlane did nothing of the sort, of course. In his temperate moments he forged close friendships with German officers, and transmitted to London a stream of warnings about Nazi intentions. But the vignette provides an illustration of the role played by fantasy in the lives of intelligence officers, tottering on a tightrope between high purpose and low comedy.

The US government was said by scornful critics to possess no intelligence arm. In a narrow sense, this was so – it did not deploy secret agents abroad. At home, J. Edgar Hoover’s Federal Bureau of Investigation was responsible for America’s internal security. For all the FBI’s trumpeted successes against gangsters and intensive surveillance of the Communist Party of the USA and trades unions, it knew little of the army of Soviet spies roaming America, and did nothing to dissuade hi-tech corporations from booming their achievements. German military attaché Gen. Friedrich von Bötticher observed boisterously about his years of service in Washington: ‘It was so easy, the Americans are so broad-minded, they print everything. You don’t need any intelligence service. You have only to be industrious, to see the newspapers!’ In 1936 Bötticher was able to forward to Berlin detailed reports on US rocket experiments. An American traitor sold the Germans blueprints of one of his country’s most cherished technological achievements, the Norden bombsight. The general urged the Abwehr not to bother to deploy secret agents in the US, to preserve his hosts’ faith in Nazi goodwill.

Intelligence agencies overvalue information gained from spies. One of the many academics conscripted into Britain’s wartime secret service observed disdainfully: ‘[MI6] values information in proportion to its secrecy, not its accuracy. They would attach more value … to a scrap of third-rate and tendentious misinformation smuggled out of Sofia in the fly-buttons of a vagabond Rumanian pimp than to any intelligence deduced from a prudent reading of the foreign press.’ American foreign correspondents and diplomats abroad provided Washington with a vision of the world no less plausible than that generated by Europe’s spies. Major Truman Smith, the long-serving US military attaché in Berlin and a warm admirer of Hitler, formed a more accurate picture of the Wehrmacht’s order of battle than did MI6.

America’s naval attachés focused on Japan, their most likely foe, though they were often reduced to photographing its warships from passing passenger liners and swapping gossip in the Tokyo attachés’ club. As secretary of state in 1929, Henry Stimson had closed down his department’s ‘Black Chamber’ codebreaking operation, reasoning like many of his fellow-countrymen that a nation which faced no external threat could forgo such sordid instruments. Nonetheless both the army and navy, in isolation and fierce competition, sustained small codebreaking teams which exerted themselves mightily. The achievement of William Friedman, born in Russia in 1891 and educated as an agriculturalist, whose army Signals Intelligence Service team led by former mathematics teacher Frank Rowlett replicated the advanced Japanese ‘Purple’ diplomatic cipher machine and broke its key in September 1940, was all the more remarkable because America’s cryptanalysts had shoestring resources. They made little attempt to crack German ciphers, because they lacked means to do so.

The Japanese spied energetically in China, the US and the European South-East Asian empires, which they viewed as prospective booty. Their agents were nothing if not committed: in 1935 when police in Singapore arrested a local Japanese expatriate on suspicion of espionage, such was the man’s anxiety to avoid causing embarrassment to Tokyo that he followed the E. Phillips Oppenheim tradition and swallowed prussic acid in his cell. The Chinese Nationalists headed by Chiang Kai-shek sustained an effective counter-intelligence service to protect his dictatorship from domestic critics, but across Asia Japanese spies were able to gather information almost unhindered. The British were more interested in countering internal communist agitation than in combating prospective foreign invaders. They found it impossible to take seriously ‘the Wops of the East’, as Churchill called the Japanese, or ‘the little yellow dwarf slaves’, in the words of the head of the Foreign Office.

Britain’s diplomats were elaborately careless about protecting their secrets, adhering to the conventions of Victorian gentlemen. Robert Cecil, who was one of them, wrote: ‘An embassy was an ambassador’s house party; it was unthinkable that one of the guests could be spying on the others.’ As early as 1933 the Foreign Office received a wake-up call, albeit unheeded: after one of its staff put his head in a gas oven, he was revealed to have been selling British ciphers to Moscow. Next a clerk, Captain John King, was found to have been funding an American mistress by peddling secrets. In 1937 a local employee in Britain’s Rome embassy, Francesco Constantini, was able to rifle his employer’s papers for the benefit of the Italian secret service, because the ambassador assumed that one could trust one’s servants. At that period also, Mussolini’s men read some British codes: not all Italians were the buffoons their enemies supposed. In 1939, when Japanese intelligence wanted the codebooks of the British consulate in Taipei, its officers easily arranged for a Japanese employee to become night-duty man. During the ensuing six months Tokyo’s agents repeatedly accessed the consulate safe, its files and codebooks.

Yet nowhere in the world was intelligence wisely managed and assessed. Though technological secrets were always useful to rival nations, it is unlikely that much of the fevered secret political and military surveillance told governments more than they might have gleaned from a careful reading of the press. Endemic rivalries injured or crippled collaboration between intelligence agencies. In Germany and Russia, Hitler and Stalin diffused power among their secret policemen, the better to concentrate mastery in their own hands. Germany’s main agency was the Abwehr, its title literally meaning ‘security’, though it was responsible for both intelligence-gathering abroad and counter-espionage at home. A branch of the armed forces, it was directed by Admiral Wilhelm Canaris. When Guy Liddell, counter-espionage director of MI5 and one of its ablest officers, later strove to explain the Abwehr’s incompetence, he expressed a sincere belief that Canaris was in the pay of the Russians.

The Nazis also had their own security machine, the Reichssicherheitshauptamt or RSHA, directed by Ernst Kaltenbrunner within the empire of Himmler. This embraced the Gestapo secret police and its sister counter-intelligence branch the Sicherheitdienst or SD, which overlapped the Abwehr’s activities in many areas. A key figure was Walter Schellenberg, Reinhard Heydrich’s aide: Schellenberg later took over the RSHA’s foreign intelligence-gathering service, which subsumed the Abwehr in 1944. High Command and diplomatic codebreaking activities were conducted by the Chiffrierabteilung, colloquially known as OKW/Chi, and the army had a large radio intelligence branch that eventually became OKH/GdNA. Göring’s Air Ministry had its own cryptographic operation, as did the Kriegsmarine. Economic intelligence was collected by the WiRuAmt, and Ribbentrop’s Foreign Ministry gathered reports from embassies abroad. Guy Liddell wrote crossly: ‘Under our system of government there was nothing to stop the Germans from getting any information they required.’ But the elaborate Nazi intelligence and counter-espionage machines were far more effective in suppressing domestic opposition than in exploiting foreign sources, even when they heard something useful from them.

France’s intelligence departments enjoyed a lowly status and correspondingly meagre budgets. Pessimism overlaid upon ignorance caused them consistently to overstate German military strength by at least 20 per cent. František Moravec believed that politics crippled French security policy as war loomed: ‘Their desire to “know” seemed to decrease proportionately as the Nazi danger increased.’ Moravec the Czech found his French counterparts half-hearted colleagues, though he returned from one inter-Allied conference with a present from a famous French criminologist, Professor Locarde of Lyons: a chemical developer which proved useful for exposing secret writing.

Since the beginning of time, governments had been able to intercept each other’s communications only when spies or accidents of war physically diverted messages into their hands. Now, however, everything was different. Wireless communication was a science slightly older than the twentieth century, but thirty years elapsed before it became a universal phenomenon. Then, during the 1930s, technological breakthroughs prompted a global explosion of transmissions. The ether hummed, whined and crackled as messages private, commercial, military, naval, diplomatic traversed nations and oceans. It became indispensable for governments and their generals and admirals to communicate operational orders and information by radio, to every subordinate, ship and formation beyond reach of a landline. Making such exchanges secure demanded nice judgements. There was a trade-off between the speed at which a signal could be dispatched and received, and the subtlety of its encryption. It was impracticable to provide front-line army units with ciphering machines, and thus instead they employed so-called hand- or field-ciphers, of varying sophistication – the German army used a British-derived system called Double Playfair.

For the most secret messages, the only almost unbreakable code was that based upon a ‘one-time pad’, a name that reflected its designation: the sender employed a unique combination of letters and/or numbers which became intelligible only to a recipient pre-supplied with the identical formula. The Soviets especially favoured this method, though their clerks sometimes compromised it by using a one-time pad more than once, as the Germans found to their advantage. From the 1920s onwards, some of the major nations started to employ ciphers which were deemed impregnable if correctly used, because messages were processed through electrically-powered keyboard machines which scrambled them into multi-millions of combinations. The magnitude of the technological challenge posed by an enemy’s machine-encrypted signals did not deter any nation from striving to read them. This became the most important intelligence objective of the Second World War.

The brightest star of the Deuxième Bureau, France’s intelligence service, was Capitaine Gustave Bertrand, head of the cryptanalytical branch in the army’s Section des Examens, who had risen from the ranks to occupy a post that no ambitious career officer wanted. One of his contacts was a Paris businessman named Rodolphe Lemoine, born Rudolf Stallman, son of a rich Berlin jeweller. In 1918 Stallman adopted French nationality; simply because he loved espionage as a game in its own right, he began to work for the Deuxième. In October 1931 he forwarded to Paris an offer from one Hans-Thilo Schmidt, brother of a German general, to sell France information about Enigma in order to dig himself out of a financial hole. Bertrand accepted, and in return for cash Schmidt delivered copious material about the machine, together with its key settings for October and November 1932. Thereafter he remained on the French payroll until 1938. Since the French knew that the Poles were also seeking to crack Enigma, the two nations agreed a collaboration: Polish cryptanalysts focused on the technology, while their French counterparts addressed enciphered texts. Bertrand also approached the British, but at the outset they showed no interest.

Britain’s codebreakers had acquired an early-model commercial Enigma as early as 1927, and examined it with respect. Since then, they knew that it had been rendered much more sophisticated by the inclusion of a complex wiring pattern known as a Steckerbrett, or plugboard. It now offered a range of possible positions for a single letter of 159 million million million. That which human ingenuity had devised, it was at least theoretically possible that human ingenuity might penetrate. In 1939, however, no one for a moment imagined that six years later intelligence snatched from the airwaves would have proved more precious to the victors, more disastrous for the losers, than every report made by all the spies of the warring nations.

2 THE BRITISH: GENTLEMEN AND PLAYERS

The reputation of MI6 was unmatched by that of any other secret service. Though Hitler, Stalin, Mussolini and Japan’s generals shared a scepticism, or even scorn, about the old lion’s fitness to fight, they viewed its spies with extravagant respect, indeed cherished a belief in their omniscience. British prowess in clandestine activity dated back to the sixteenth century at least. Francis Bacon wrote in his History of the Reign of King Henry VII: ‘As for his secret Spials, which he did employ both at home and abroad, by them to discover what Practises and Conspiracies were against him, surely his Case required it.’ Queen Elizabeth I’s Sir Francis Walsingham was one of history’s legendary spymasters. Much later came the romances of Rudyard Kipling’s Kim, of John Buchan’s Richard Hannay, of dashing ‘clubland heroes’ who played chess for England with a thousand live pieces across a board that spanned continents. A wartime British secret servant observed: ‘Practically every officer I met in that concern, at home and abroad, was, like me, imagining himself as Hannay.’ The great Danish physicist Niels Bohr told the scientific intelligence officer R.V. Jones that he was happy to cooperate with the British secret service because ‘it was run by a gentleman’.

British intelligence had enjoyed a good Great War. The Royal Navy’s codebreakers, such men as Dillwyn Knox and Alastair Denniston, labouring in the Admiralty’s Room 40, provided commanders with a wealth of information about the motions of the German High Seas Fleet. The decryption and public revelation of Berlin’s 1917 Zimmermann Telegram, urging the Mexicans to take aggressive action against the United States, played a critical role in bringing the Americans into the war. For two years after the November 1918 Armistice, the secret service was deeply involved in the Allies’ unsuccessful attempt to reverse the outcome of the Russian Revolution. Even after this was abandoned, the threat from international communism remained the foremost preoccupation of British espionage and counter-espionage.

Yet amid the inter-war slump, funding was squeezed. MI6 mouldered, to an extent little understood by either Britain’s friends or foes. Hugh Trevor-Roper, the historian who became one of its wartime officers, wrote: ‘Foreign intelligence services envied the British secret service; it was their idealised model … It enjoyed the reputation of an invisible, implacable force, like the Platonic world-spirit, operating everywhere. To the Nazi government, it was at the same time a bogey and an ideal … The reality … was rather different.’ MI6’s senior officers were men of moderate abilities, drawn into the organisation by the lure of playing out a pastiche of Kipling’s ‘Great Game’, and often after earlier careers as colonial policemen.

They masqueraded as passport control officers in embassies abroad, or shuffled paper in the service’s austere – indeed, frankly squalid – headquarters beside St James’s Park underground station, in Broadway Buildings, a place of threadbare carpets and unshaded lightbulbs. MI6 sustained a quirky tradition of paying its staff tax-free and in cash, but so small a pittance that a private income was almost essential for officers who aspired to an upper-middle-class lifestyle, which meant all of them. Though its budget was progressively increased from £180,000 in 1935 to £500,000 in 1939, few graduates entered the service, because its bosses did not want them. MI6, in the view of one practitioner, was designed merely to receive intelligence rather than actively to procure it. It was run by a coterie of anti-intellectual officers who saw their principal, if not sole, task as that of combating revolutionary communism. The shift of emphasis to monitoring Nazis and fascists during the late pre-war period caused great difficulties.

Some recruits of that period proved ill-suited to the essential nastiness of espionage. Lt. Cmdr Joseph Newill, a retired sailor posted to Scandinavia in 1938 on the strength of speaking Norwegian, wailed to London: ‘I doubt whether I have the natural guile so essential for this work!’ Newill complained that his role involved much more hard labour than he had expected. He told his station chief petulantly: ‘I am 52 and I am not going to work myself to death at my time of life.’ But he was kept in the job, and contrived to meet Broadway’s undemanding standards. MI6’s Shanghai station chief, Harry Steptoe, operated under cover as vice-consul. A jaunty little cock-sparrow figure who affected a moustache and monocle, he puzzled a foreign diplomat by his appearance at receptions in a lovat-green suit adorned with gold braid. Was this, demanded the diplomat, the full-dress uniform of the British secret service? When the Japanese interned Steptoe in 1942, they dismissed the possibility that such a comic figure could be a spymaster, and instead subjected to brutal interrogation a hapless British Council representative, whose field of knowledge was exclusively cultural.

Broadway struggled to secure intelligence from the Continent. In 1936 a new MI6 department was formed to monitor Germany and Italy. Z Section was run by Claude Dansey, a former imperial soldier who bore a haversack groaning with blimpish prejudices, among them a loathing for Americans. It became an almost independent fiefdom, which operated under commercial cover from offices in Bush House in The Strand. Its sources were mostly elderly retreads such as the Lithuanian Baron William de Ropp, who for more than a decade extracted from the British £1,000 a year – a handsome competence – in return for fragments of German political gossip. The Nazis were well aware of de Ropp’s role, and fed him what they wanted London to hear. In August 1938 the Baron decided that his secret life had become too fraught, and wisely retired to Switzerland.

Naval engineer Dr Karl Kruger’s story had a darker ending. From 1914 to 1939 he fed some good information to the British on a cash-and-carry basis, but vanished from sight a month before the outbreak of war. His file at Broadway was eventually marked ‘Agent presumed “dead”.’ This was not surprising, because Kruger – like most of MI6’s German informants – was controlled by its Hague station, where one of the local staff, Folkert van Koutrik, was on the Abwehr’s payroll. The service’s best pre-war humint source was Wolfgang Gans Edler zu Putlitz, press attaché at the German embassy in London, an aristocrat and homosexual. He was run by Klop Ustinov – father of the actor Peter – a Russian-born journalist who lost his newspaper job in 1935 because of his Jewishness. When Putlitz was transferred to The Hague in 1938, Ustinov followed him at MI6’s behest. After Folkert van Koutrik later betrayed the British operation in Holland, Putlitz hastily sought asylum in London.

The flow of intelligence from the Continent was thin. The Air Ministry complained about the paucity of material on the use of aircraft in the Spanish Civil War, an important issue for planners. Britain’s ambassador in Berlin, Sir Nevile Henderson, shared with his fellow-diplomats a disdain for espionage which caused him to refuse diplomatic status to Broadway’s ‘Passport Control Officers’. Even where MI6 tried to provide German informants with wireless sets, most were reluctant to take them, because discovery of such equipment by the Gestapo ensured a death sentence for the possessor.

Very occasionally, among the mountain of rubbish that accumulated in Broadway’s files there was a pearl. In the spring of 1939 an agent codenamed ‘the Baron’, with good social connections in East Prussia, reported to his handler Harry Carr in Helsinki that the Germans were secretly negotiating with Stalin. He followed this up with a further missive in June, asserting that talks between Berlin and Moscow were making good progress. Yet this sensational pointer to the looming Nazi–Soviet Pact, which afterwards proved to have come from gossip among aristocrats working in the German Foreign Ministry, was dismissed in Broadway. To MI6’s senior officers, a devils’ pact between Stalin and Hitler seemed a fantastic notion. An authentic scoop was missed; first, because MI6, like most intelligence organisations, had an instinctive and usually prudent scepticism about its own sources; second, because what ‘the Baron’ reported ran contrary to his employers’ expectations. At that time, and indeed throughout the war, MI6 had no internal machinery for analysing incoming intelligence, though its chiefs could point out that the Axis Powers lacked this also.

Czechoslovakia and Poland occupied the front line in the European confrontation with Hitler. MI6 showed little interest in collaboration with their intelligence services until March 1939, when the strategic picture changed dramatically: the British and French governments gave a security guarantee to Poland. This galvanised Broadway.

On 25 July, a British delegation composed of a naval intelligence officer together with Alastair Denniston, director of the Government Code & Cypher School, and Dillwyn Knox, one of its foremost codebreakers, joined France’s Gustave Bertrand – himself no cryptographer, but a notable facilitator and diplomat – at an exploratory meeting with their Polish counterparts led by Col. Gwido Langer, held at their cryptographic centre in the Kabackie woods near Pyry, south of Warsaw. The first day’s talks, conducted in mixed French and German, went very badly. Knox, for reasons unknown, was in a vile temper, and highly sceptical that the Poles had anything to tell worth hearing. He seemed unable to understand the methods by which they claimed to have achieved the breakthrough which had enabled them to read some German naval traffic. All the parties present were fencing, to discover each other’s state of knowledge. Warsaw’s decision to involve the British was prompted by new difficulties that had frustrated their own codebreakers since the Germans on 1 January adopted an enhanced stecker board, for their Enigmas, with ten plugs instead of seven. On the second day, 26 July, the conference’s atmosphere was transformed for the better. In the basement of the building the Poles showed off their ‘bomby’, primitive computing devices designed to test multiple mathematical possibilities. Then they produced a coup de théâtre: they presented both visiting delegations with mimicked copies of the Enigma built by their own men. Knox’s scepticism crumbled, and the meeting ended in a mood of goodwill and mutual respect. Everybody at Broadway recognised the importance of the Poles’ gesture to their allies as a contribution to the secret struggle against the Nazis. Marian Rejewski, a former mathematics student at Warsaw University who had joined the Kabackie woods team back in 1932, is today acknowledged as a pioneer among those who laid bare the secrets of Enigma, even if it fell to others, in Britain, to advance and exploit Rejewski’s achievement.

Stewart Menzies, then deputy chief of MI6, was so impressed by the outcome of the Polish trip that he turned up in person at Victoria station to greet Gustave Bertrand – and to inspect the mimicked Enigma. Knox sent the Poles a gift of scarves, decorated with images of Derby runners, with the letter thanking his hosts for their ‘co-operation and patience’. At or around this time also, the Poles provided the British with five of the Enigma’s eight alternative rotors. A chasm still yawned, however, between understanding how the machine worked, and achieving the ability to read its traffic. Though a trickle of German messages were broken by human ingenuity during the winter of 1939–40, traffic was breached on an industrial scale only from 1941 onwards, following the creation of revolutionary electro-mechanical technology. Nonetheless, the assistance of the French and Poles dramatically accelerated progress at the GC&CS, now evacuated from London to a safer country home. Physical possession of the enemy’s encryption instrument enabled its cryptanalysts to grasp the mountainous challenge they must overcome.

Until 1939, and in large measure for two years thereafter, British intelligence remained dependent for its view of the world upon humint – reports from informants abroad. How well did MI6 fulfil its responsibility to brief the government about the mounting threat from Nazi Germany – ‘Twelveland’ in Broadway parlance? It produced many reports arguing that Hitler’s long-term ambitions lay in the East, and this was fundamentally correct. Unfortunately for its credibility, however, in 1940 Germany chose first to seek to dispose of the Western democracies. MI6 was in no doubt that Hitler was rearming fast, but insistently emphasised the weakness of the industrial base from which he aspired to make war. Responsibility for gathering economic data rested with the Industrial Intelligence Centre, an offshoot administered since 1934 by the Foreign Office, but run by the veteran secret service officer Major Desmond Morton. During the ‘wilderness years’, Morton passed to Winston Churchill – with the sanction of prime minister Stanley Baldwin – details of German rearmament which empowered the unheeded prophet to cry forth warnings to the world. Ironically, the Major wildly overstated the growth of Hitler’s military machine: Morton never had much grasp of economics in general, nor of the Nazi economy in particular.

But modern historians critical of pre-war British intelligence failures miss some important points. In those days few people of any nationality understood economic analysis. The IIC was correct in judging that Germany was ill-prepared to conduct a long struggle, and was rendered vulnerable by its dependence on imported commodities and especially oil. The German economy, as Adam Tooze has shown, was not strong enough to meet the huge challenge Hitler sought to fulfil, of conquering the most advanced societies on earth. Germany’s GDP was no larger than Britain’s, and her people’s per capita incomes were lower. In 1939, Hitler’s expenditures on armaments had reduced his country’s finances to a parlous condition. But it was asking too much of any intelligence service to gauge the potential of German industry under the stimulus of conflict: to the very end of World War II, the best brains in the Allied nations failed fully to achieve this. MI6 could not be expected to predict Hitler’s conquests, which dramatically enhanced his access to oil, raw materials and slave labour.

On the military side, neither MI6 nor the service departments learned much about the new technology and tactics being developed by Britain’s enemies. Nor about their limitations: they wildly overrated the Luftwaffe’s ability to devastate Britain’s cities. In 1938, Broadway reported that the Germans had 927 first-line bombers capable of mounting 720 sorties a day and dropping 945 tons of ordnance (this was an exaggeration of 50 per cent), and projections of likely casualties were even more inflated. War Office appreciations of the German army were equally mistaken, especially in estimating its potential mobilised strength. These suggested in 1939 that Hitler was already master of the largest war machine his nation’s resources could bear. Rearmament, coupled with vast public expenditure, ‘had taxed the endurance of the German people and the stability of the economic system to a point where any further effort can only be achieved at the risk of a breakdown of the entire structure’.

A February 1939 Strategical Appreciation by the chiefs of staff, drafted by the Joint Planning Committee, asserted that Britain could survive a long war better than Germany. This was true, but the chiefs said nothing about the danger that it could meanwhile lose a short one. Moreover, they never pressed the cabinet to acknowledge the shocking weakness of Britain’s Far East empire. The three services’ intelligence branches had no contact with each other, and there were no joint staffs.

As for politics, an MI6 officer wrote in a November 1938 report for the Foreign Office: ‘Not even Hitler’s intimates, according to one of them, knows if he would really risk world war.’ A few months later, the service’s credibility was severely injured by its issue of warnings that Germany intended imminently to strike at Western Europe, starting with Holland. Embarrassment was increased by the fact that the Foreign Office forwarded this alarm call to the US government. One of the British recipients, senior civil servant Sir George Mounsey, delivered a blast against MI6 which echoed around Whitehall. The Foreign Office’s standing was damaged, he said, by acting on the basis of ‘a highly sensational and highly disturbing kind of information which [MI6] are unable to guarantee’. Mounsey was dismissive of all covert sources, agents whose rumour-mongering had prompted Broadway’s warning: ‘They have a secret mission and they must justify it … If nothing comes to hand for them to report, they must earn their pay by finding something … Are we going to remain so attached to reliance on secret reports, which tie our hands in all directions?’ Mounsey had his own agenda: to sustain the policy of appeasement adopted by Neville Chamberlain and Lord Halifax, whom he admired prodigiously. His views nonetheless reflected a general scepticism in high places about Broadway’s performance.

Gladwyn Jebb of the Foreign Office, often a critic of MI6, on this occasion leapt to its defence. While acknowledging the frustrations of dealing with secret organisations, he said that he could not forget that its officers ‘did warn us of the September [1938 Munich] crisis, and they did not give any colour to the ridiculous optimism that prevailed up to the rape of Czechoslovakia, of which our official [diplomatic] reports did not give us much warning’. In December 1938 Broadway offered a sound character sketch of Germany’s Führer, at a time when many British diplomats and politicians still deluded themselves that he was a man they could do business with. ‘Among his characteristics,’ asserted the MI6 report, ‘are fanaticism, mysticism, ruthlessness, cunning, vanity, moods of exaltation and depression, fits of bitter and self-righteous resentment, and what can only be termed a streak of madness; but with it all there is great tenacity of purpose, which has often been combined with extraordinary clarity of vision. He has gained the reputation of being always able to choose the right moment and right method for “getting away with it”. In the eyes of his disciples, and increasingly in his own, “the Führer is always right”. He has unbounded self-confidence, which has grown in proportion to the strength of the machine he has created; but it is a self-confidence which has latterly been tempered less than hitherto with patience and restraint.’

It is easy to catalogue the shortcomings of MI6. Like most of its sister services on the Continent, in 1939 it commanded little respect in high places, and had small influence on policy-making. It seems necessary to go beyond this, however, and pose the question: what might its spies have usefully discovered, granted more resources and cleverer people? The likely answer is: not much. MI6’s reporting was matched by a daily bombardment of newspaper headlines, both showing beyond peradventure that Germany was rearming. More accurate and detailed information about Hitler’s armed forces would have been useful to the War Office and Downing Street, but the critical issue, the vital uncertainty, was not that of Germany’s capabilities, but rather that of its intentions.

It seems quite misplaced to blame wrong or inadequate intelligence for the calamitous failure of Britain and France to deal effectively with the Nazis. Both nations correctly assessed the options at Hitler’s disposal for onslaughts East or West. MI6 can scarcely be held responsible for failing to anticipate exactly where or when he would attack, because he himself was an opportunist who reserved his decisions until the last moment. Sir Alexander Cadogan, permanent under-secretary at the Foreign Office, wrote much later: ‘We were daily inundated by all sorts of reports. It just happened that these were correct; we had no means of evaluating their reliability at the time of their receipt. (Nor was there much that we could do about it!)’ Rather than a failure of intelligence, what mattered was the democracies’ failure of will – the refusal to acknowledge that the Nazis constituted an irreconcilable force for evil, which the very survival of European civilisation made it essential to destroy, rather than to bargain with.

Most of Hitler’s opponents inside Germany, and indeed across Europe, were communists who considered the Russians the only people both willing and able to challenge fascism. Everything said and done by the British and French governments before the outbreak of war confirmed anti-Nazis in that view. Thus, people who wished to contribute to undoing Hitler offered information to the agents of Moscow much more readily than to those of London or Paris. It was anti-Nazis’ poor opinion of Neville Chamberlain that made them reluctant to look to his country as a shield against Hitler, not their perception of MI6.

It is far more plausible to argue that Britain’s diplomats should have exposed the dictators’ intentions than to suggest that its spies might have done so. In peacetime, good intelligence officers can assist their governments to grasp the economic, military and technological capabilities of prospective enemies, but it is unusual for a secret service to provide a reliable crib about their intentions. Top diplomats ought to have been cleverer than intelligence officers. Their training, experience and access to sources should have empowered them to assess the world with greater wisdom than Broadway’s old soldiers. It seems far more discreditable that Henderson, Britain’s ambassador in Berlin, was willing for so long to think well of Hitler, than that MI6 with its meagre resources was unable to tell the government what the Führer would do next. If a German anti-Nazi had turned up on Henderson’s embassy doorstep, offering inside information, it is likely that he would have been sent packing.

Admiral Sir Hugh Sinclair – ‘C’, as the head of the secret service was always known – died suddenly in November 1939, having occupied his post for sixteen years. Winston Churchill, as First Lord of the Admiralty, pressed the claims of the obscure Gerhard Muirhead-Gould, a former naval attaché in Berlin, to succeed him. Instead, however, Sinclair’s deputy, forty-nine-year-old Guards officer Brigadier Stewart Menzies, convinced the Foreign Office and the prime minister that he had been anointed by the dying Sinclair as his rightful successor. He thus inherited a mantle that he was widely considered ill-fitted to wear. The ninth Duke of Buccleuch, who had been Menzies’ fag at Eton, told a friend that ‘C’s’ contemporaries were mystified ‘how so unbelievably stupid a man could have ended up in such a position’. Hugh Trevor-Roper sneered at Menzies as ‘a thoughtless feudal lord, living comfortably on income produced from the labour of peasants whom he had never seen, working estates which he had never visited’.

This was hyperbolic, as were most of the historian’s private judgements on his colleagues, but it was true that Menzies had learned his craft in a bad school – not so much Eton as service on the staff of Brigadier John Charteris, Field-Marshal Sir Douglas Haig’s egregious intelligence chief on the Western Front. Menzies’ DSO and MC showed that he did not lack courage. His social skills sufficed to win the confidence of Maj. Gen. Hastings ‘Pug’ Ismay, soon to become Churchill’s chief of staff, and in some degree that of the prime minister himself. But ‘C’ knew little of the wider world he aspired to spy upon, and tolerated in Broadway a bevy of even less inspired subordinates.

Decisions were powerfully influenced by his two joint deputies, Valentine Vivian and Claude Dansey, who hated each other. Vivian was a former Indian policeman who was credited with a major role in frustrating the machinations of the Comintern – the Communist International – in South America and the Far East; he was also an office intriguer of energy and skill. Meanwhile Dansey went briefly to Bern in September 1939, to try to organise intelligence links from neutral Switzerland to Germany. A plentiful supply of fraudulent informants emerged, of whom by no means the most imaginative was a German refugee in Switzerland who used his nation’s Army List to fabricate a mobilisation programme which he attempted to sell. One of the few useful sources Dansey identified was an Austrian Pole, Count Horodyski. He, in turn, introduced the British to Halina Szymańska, wife of the former Polish military attaché in Berlin, now an exile in Switzerland. She became one of MI6’s most useful conduits, with connections in the Abwehr. Dansey thereafter returned to London, where he exercised a powerful influence on the wartime fortunes of MI6, mostly to its detriment.

During the years that followed, Britain’s secret service recruited numbers of outstanding officers and agents, who did some useful and a few important things for the Allied cause, but its chieftains inspired only limited respect. The stimulus of war would generate an intelligence revolution, and give birth to one of Britain’s most dazzling achievements. However, this did not take place in Broadway Buildings, but instead outside a dreary suburban town in Buckinghamshire.

3 THE RUSSIANS: TEMPLES OF ESPIONAGE

Just before noon on 23 May 1938, Pavel Sudoplatov of the NKVD strolled into the Atlanta restaurant in Rotterdam and greeted a Ukrainian nationalist leader whom he had come to know well, in the guise of being a sympathiser with the man’s cause. Sudoplatov, newly arrived on a merchant ship from Murmansk, presented the man with a handsome box of chocolates adorned with the Ukrainian crest. The two chatted for a few moments to arrange a further rendezvous, then Moscow’s agent bade his companion farewell and moved on. He was a safe distance down the street by the time he heard a sharp explosion. A timing device had detonated a bomb inside the box, killing the nationalist. This was a typical Moscow Centre* (#ulink_99185e61-d20f-5c69-bc15-c41bdd37fe84) operation of the period, one thrust in the relentless campaign to liquidate state enemies, real or supposed traitors. Sudoplatov’s success earned him a four-hour meeting with Stalin’s foremost secret policeman, Lavrenti Beria, who marked him for bigger things, such as managing the assassination of Leon Trotsky.

The Soviet Union owned the most active and best-resourced intelligence organisations in the world – the Red Army’s GRU and the NKVD, the latter controlled by Beria from December 1938. The foremost purposes of Joseph Stalin, master of the Kremlin, were the promotion of socialism abroad through the Comintern and the maintenance of his own power against domestic and foreign enemies. Both required spies in profusion. Throughout the 1930s, Russia pursued a strategy more far-reaching in its means – the plantation of deep-penetration agents – and its ends – the worldwide triumph of communism – than those of any other nation. How far the funds and energy lavished on its secret war profited the Soviet Union will be considered below. Here, it suffices to say that the espionage networks it established in the US, Britain, Japan and Europe were on a scale far beyond those of any other nation, and manifested in big things and small. When Japanese police arrested a Soviet agent carrying a Leica camera, Tokyo’s intelligence officers were pathetically envious: they could not afford to equip their own spies with technology remotely so sophisticated. This was a time when tens of millions of Russians were starving, yet Stalin’s agents spent whatever seemed necessary to purchase information and the deaths of enemies. From Switzerland to Mexico they left roadsides studded with corpses, and created some of the most remarkable agent networks in the history of intelligence.

The Russian addiction to espionage and conspiracy was as old as time. In 1912, when according to official figures Germany spent £80,387 on its secret service, France £40,000 and Britain £50,000, the Russians avowed a budget of £380,000, plus a further £335,000 for the tsar’s secret police. Tsarist codebreakers achieved some notable coups, and their successors sustained the tradition. In the 1930s the NKVD’s Fourth Department, the world’s most lavishly-funded signals intelligence unit, was based in the Foreign Affairs building on Moscow’s Kuznetsky bridge. Its chief, Gleb Ivanovitch Bokii, achieved a reputation as a killer and sexual predator matching that of Beria. Though Bokii’s team never broke wartime German Enigma messages, it enjoyed useful earlier and lesser successes, such as securing the secret protocol to the 1936 Anti-Comintern Pact between Germany and Japan, before its chief faced a firing squad the following year. Stalin personally read many decrypts; like Churchill later, he trusted the codebreakers’ product as he never did humint. The Kremlin displayed as brutal a carelessness about casualties among its spies as it did towards the fate of its soldiers. In 1936 František Moravec of Czech intelligence received a Soviet proposal that his service should provide crash espionage training for a hundred Russians, who would then be dispatched into Germany. Moravec expostulated that such novices would face wholesale extinction. His Moscow contact shrugged: ‘In that case, we shall send another hundred.’

The Soviet Union enjoyed a critical advantage in building its empire of espionage. While fascism gained millions of supporters in Germany, Italy and Spain, it never matched the appeal of worldwide communism during the decades before the latter’s bloodstained reality was laid bare. In every nation, men and women of brains and education, lofty ideals and unbounded naïveté queued to betray their own societies’ secrets for what they deemed a higher cause. From Moscow, hundreds of men and women were sent forth to direct networks in Japan and the United States, Germany, France and other European nations. The NKVD achieved excellent penetration of the French Foreign Office, and frequently quoted its ambassadors’ dispatches. Many of its informants deluded themselves that they were passing secrets not to the Soviets, but instead to the Comintern – which was in truth merely a postbox for the Kremlin.