"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-Council 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 triable 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 triable 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 and 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.