APPENDIX.

Since the preceding pages were written, and as proofs are being passed

for press, the following statement has been issued for publication by

the Home Office with regard to British counter-espionage measures:

"In view of the anxiety naturally felt by the public with regard to the

system of espionage on which Germany has placed so much reliance, and to

which attention has been directed by recent reports from the seat of

war, it may be well to state briefly the steps which the Home Office,

acting on behalf of the Admiralty and War Office, has taken to deal with

the matter in this country. The secrecy which it has hitherto been

desirable in the public interest to observe on certain points cannot any

longer be maintained, owing to the evidence which it is necessary to

produce in cases against spies that are now pending.

"It was clearly ascertained five or six years ago that the Germans were

making great efforts to establish a system of espionage in this country,

and in order to trace and thwart these efforts a Special Intelligence

Department was established by the Admiralty and the War Office which has

ever since acted in the closest co-operation with the Home Office and

Metropolitan Police and the principal provincial Police Forces. In

1911, by the passing of the Official Secrets Act, 1911, the law with

regard to espionage, which had hitherto been confused and defective, was

put on a clear basis and extended so as to embrace every possible mode

of obtaining and conveying to the enemy information which might be

useful in war.

"The Special Intelligence Department, supported by all the means which

could be placed at its disposal by the Home Secretary, was able in three

years, from 1911 to 1914, to discover the ramifications of the German

secret service in England. In spite of enormous efforts and lavish

expenditure of money by the enemy, little valuable information passed

into their hands. The agents, of whose identity knowledge was obtained

by the Special Intelligence Department, were watched and shadowed

without in general taking any hostile action or allowing them to know

that their movements were watched. When, however, any actual step was

taken to convey plans or documents of importance from this country to

Germany the spy was arrested, and in such case evidence sufficient to

secure his conviction was usually found in his possession. Proceedings

under the Official Secrets Acts were taken by the Director of Public

Prosecutions, and in six cases sentences were passed varying from

eighteen months to six years' penal servitude. At the same time steps

were taken to mark down and keep under observation all the agents known

to be engaged in this traffic, so that when any necessity arose the

Police might lay hands on them at once, and accordingly on August 4,

before the declaration of war, instructions were given by the Home

Secretary for the arrest of twenty known spies, and all were arrested.

This figure does not cover a large number (upwards of two hundred) who

were noted as under suspicion or to be kept under special observation.

The great majority of these were interned at or soon after the

declaration of war.

"None of the men arrested in pursuance of the orders issued on August 4

has yet been brought to trial, partly because the officers whose

evidence would have been required were engaged in urgent duties in the

early days of the war, but mainly because the prosecution, by disclosing

the means adopted to track out the spies and prove their guilt, would

have hampered the Intelligence Department in its further efforts. They

were, and still are, held as prisoners under the powers given to the

Secretary of State by the Aliens Restriction Act. One of them, however,

who established a claim to British nationality, has now been formally

charged, and, the reasons for delay no longer existing, it is a matter

for consideration whether the same course should now be taken with

regard to some of the other known spies.

"Although this action taken on August 4 is believed to have broken up

the spy organisation which had been established before the war, it is

still necessary to take the most rigorous measures to prevent the

establishment of any fresh organisation and to deal with individual

spies who might previously have been working in this country outside the

organisation, or who might be sent here under the guise of neutrals

after the declaration of war. In carrying this out the Home Office and

War Office have now the assistance of the Cable Censorship, and also of

the Postal Censorship, which, established originally to deal with

correspondence with Germany and Austria, has been gradually extended (as

the necessary staff could be obtained) so as to cover communications

with those neutral countries through which correspondence might readily

pass to Germany or Austria. The censorship has been extremely effective

in stopping secret communications by cable or letter with the enemy;

but, as its existence was necessarily known to them, it has not, except

in a few instances, produced materials for the detection of espionage.

"On August 5 the Aliens Restriction Act was passed, and within an hour

of its passing an Order-in-Coundl was made which gave the Home Office

and the Police stringent powers to deal with aliens, and especially

enemy aliens, who under this act could be stopped from entering or

leaving the United Kingdom, and were prohibited while residing in this

country from having in their possession any wireless or signalling

apparatus of any kind, or any carrier or homing pigeons. Under this

Order all those districts where the Admiralty or War Office considered

it undesirable that enemy aliens should reside have been cleared by the

Police of Germans and Austrians, with the exception of a few persons,

chiefly women and children, whose character and antecedents are such

that the local Chief Constable, in whose discretion the matter is vested

by the Order, considered that all ground for suspicion was precluded.

At the same time the Post Office, acting under the powers given them by

the Wireless Telegraphy Acts, dismantled all private wireless stations;

and they established a special system of wireless detection by which any

station actually used for the transmission of messages from this country

could be discovered. The Police have co-operated successfully in this

matter with the Post Office.

"New and still more stringent powers for dealing with espionage were

given by the Defence of the Realm Act, which was passed by the Home

Secretary through the House of Commons and received the Royal Assent on

August 8. Orders-in-Council have been made under this Act which

prohibit, in the widest terms, any attempt on the part either of aliens

or of British subjects to communicate any information which is

calculated `to be or might be directly or indirectly useful to an

enemy'; and any person offending against this prohibition is liable to

be tried by court-martial and sentenced to penal servitude for life.

The effect of these Orders is to make espionage a military offence.

Power is given both to the police and to the military authorities to

arrest without a warrant any person whose behaviour is such as to give

rise to suspicion, and any person so arrested by the police would be

handed over to the military authorities for trial by court-martial.

Only in the event of the military authorities holding that there is no

prima-facie case of espionage or any other offence tryable by military

law is a prisoner handed back to the civil authorities to consider

whether he should be charged with failing to register or with any other

offence under the Aliens Restriction Act.

"The present position is, therefore, that espionage has been made by

statute a military offence tryable by court-martial. If tried under the

Defence of the Realm Act, the maximum punishment is penal servitude for

life; but if dealt with outside that Act as a war crime the punishment

of death can be inflicted.

"At the present moment one case is pending in which a person charged

with attempting to convey information to the enemy is now awaiting his

trial by court-martial, but in no other case has any clear trace been

discovered of any attempt to convey information to the enemy, and there

is good reason to believe that the spy organisation crushed at the

outbreak of the war has not been re-established.

"How completely that system had been suppressed in the early days of the

war is clear from the fact--disclosed in a German Army Order--that on

August 21 the German Military Commanders were still ignorant of the

despatch and movements of the British Expeditionary Force, although

these had been known for many days to a large number of people in this

country.

"The fact, however, of this initial success does not prevent the

possibility of fresh attempts at espionage being made, and there is no

relaxation in the efforts of the Intelligence Department and of the

Police to watch and detect any attempts in this direction. In carrying

out their duties, the military and police authorities would expect that

persons having information of cases of suspected espionage would

communicate the grounds of the suspicion to local military authority or

to the local police, who are in direct communication with the Special

Intelligence Department, instead of causing unnecessary public alarm,

and possibly giving warning to the spies by public speeches or letters

to the Press. In cases in which the Director of Public Prosecutions has

appealed to the authors of such letters and speeches to supply him with

the evidence upon which their statements were founded in order that he

might consider the question of prosecuting the offender, no evidence of

any value has as yet been forthcoming.

"Among other measures which have been taken has been the registration,

by Order of the Secretary of State, made under the Defence of the Realm

Act, of all persons keeping carrier or homing pigeons. The importation

and the conveyance by rail of these birds have been prohibited; and,

with the valuable assistance of the National Homing Union, a system of

registration has been extended to the whole of the United Kingdom, and

measures have been taken which it is believed will be effective to

prevent the possibility of any birds being kept in this country which

would fly to the Continent.

"Another matter which has engaged the closest attention of the police

has been the possibility of conspiracies to commit outrage. No trace

whatever has been discovered of any such conspiracy, and no outrage of

any sort has yet been committed by any alien--not even telegraph-wires

having been maliciously cut since the beginning of the war.

Nevertheless, it has been necessary to bear in mind the possibility that

such a secret conspiracy might exist or might be formed among alien

enemies resident in this country.

"Accordingly, immediately after the commencement of hostilities,

rigorous search was made by the police in the houses of Germans and

Austrians, in their clubs and in all places where they were likely to

resort. In a few cases individuals were found who were in possession of

a gun or pistol which they had not declared, and in one or two cases

there were small collections of ancient firearms, and in such cases the

offenders have been prosecuted and punished; but no store of effective

arms--still less any bombs or instruments of destruction--have so far

been discovered.

"From the beginning, any Germans or Austrians who were deemed by the

police to be likely to be dangerous were apprehended, handed over to the

military authorities, and detained as prisoners of war; and, as soon as

the military authorities desired it, general action was taken to arrest

and hand over to military custody Germans of military age, subject to

exceptions which have properly been made on grounds of policy. About

9,000 Germans and Austrians of military age have been so arrested, and

are held as prisoners of war in detention camps, and among them are

included those who are regarded by the police as likely in any possible

event to take part in any outbreak of disorder or incendiarism."

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