British public were whipped into a frenzy. Politicians who wanted to expand Britain’s relatively small peacetime army jumped on the bandwagon. In 1908 Lord Roberts, Britain’s most distinguished soldier, claimed there were 80,000 trained undercover German soldiers in England ready to assist in the event of an invasion.17 Newspapers offered £10 to members of the public who reported sightings of suspicious activities that they could pass on to le Queux so he could ‘supplement his investigations’. Unsurprisingly, they were inundated with information, and soon it seemed a supposed German saboteur had been spotted in every town in the land,18 including some unfortunate Foreign Office clerical staff holidaying on the east coast.19 The government was annoyed by the obvious political scheming by advocates of increased arms spending. In 1906, Asquith’s predecessor as prime minister, Henry Campbell-Bannerman, rose to his feet in Parliament to denounce le Queux as a ‘pernicious scaremonger’ whose stories risked provoking an unnecessary war with Germany.20
Despite prime ministerial condemnation, several key figures in government worked hand in glove with le Queux. James Edmonds, head of a fledgling military intelligence unit called MO(5), maintained that Berlin had an extensive ring of operatives in Britain. Edmonds had long been nagging a dismissive Richard Haldane, secretary of state for war under both Campbell-Bannerman and Asquith, about the shortcomings of British counter-espionage. He therefore found le Queux’s activities more than welcome.21 Indeed, much of the evidence that he presented to his masters came from le Queux, who in turn said that he had received it from concerned members of the public. There had only been five cases of German espionage reported in 1907, but unsurprisingly by 1908 this had risen to forty-eight. Edmonds created a helpful map of agent sightings. Perhaps equally unsurprisingly, this was soon leaked to the press. He also recruited William Melville, the former head of Special Branch, who while a talented agent-runner, had a reputation for embellishing his stories.22
By 1909, nefarious German agents were apparently hiding behind almost every bush in Britain. Asquith, however, had other things on his mind. His overwhelming, and rather challenging, priority was to take on and reform the House of Lords, which had consistently blocked his progressive agenda. The time and energy he devoted to this issue only increased further when the Lords famously rejected his government’s budget in 1909. But with the public suffering from spy-fever, the prime minister now had to take note of intelligence matters. As chancellor of the exchequer and in his early months as prime minister, Asquith had already chaired a senior committee to consider the invasion threat in response to pressure from Roberts and le Queux. His report demolished their theories, and showed a surprise attack to be impossible.23 Nonetheless, still under immense public pressure, in 1909 Asquith asked the Committee of Imperial Defence to consider the danger of foreign agents operating in the UK. All this accelerated an important cultural change away from the idea that counter-espionage at home was authoritarian and un-British.24
Although flawed and bogus intelligence reports shaped its ultimate findings, Asquith swiftly sanctioned the committee’s recommendation to establish a new Secret Service Bureau. This top-secret decision – very few people knew about the bureau’s existence – fundamentally altered the landscape of British intelligence forever. British espionage was nothing new, but its formalisation and growing proximity to Downing Street marked the beginning of a more organised and centralised intelligence system. It was not yet, though, an intelligence community linked to Downing Street, and early prime ministers remained unable or unwilling to engage with the secret world particularly closely.
The Secret Service Bureau was comprised of two branches. MO5(g) was the domestic branch, responsible for counter-espionage, and would soon come to be known as ‘MI5’, or the security service. It inherited a number of army counter-intelligence officers, and was led by Captain Vernon Kell, deputy to James Edmonds at MO(5). Kell went on to serve continuously in the role for more than twenty years. Ever present around intelligence matters for nearly half a century, Winston Churchill, as home secretary, oversaw Kell’s appointment. Adding a symmetry to Kell’s long career as spymaster, Churchill, when prime minister, would remove him from office in 1940.25 The Secret Service Bureau also had a foreign branch. Initially called MI1c, it soon restyled itself MI6, and was headed by the remarkable figure of Sir Mansfield Cumming, a retired naval officer. Despite losing his leg in a traffic accident in France, Cumming continued to run MI6, speeding down the corridors of Whitehall by planting his wooden leg firmly on a modified child’s scooter. MI5 was a small organisation and MI6 even smaller, but a key change had occurred. Hitherto, individual government departments, especially the India Office, had gathered intelligence locally and conducted espionage for their own purposes. Now Whitehall had an interdepartmental intelligence machine at the centre, delivering a ‘service’ to all government departments and anointed with the cult of specialness.26
After 1909, Asquith’s government went further. Harassed by continued public concern about nefarious German activities, it introduced the trappings of a secret state that previous successive governments had resisted for a century. Between 1909 and 1911, Asquith not only created the Secret Service Bureau, but also passed a draconian Official Secrets Act and allowed for much wider mail interception, something a Liberal government had banned as a diabolical infringement of liberties some fifty years before.27 The new Official Secrets Act, encouraged by Edmonds of MO(5), also helped the government to crack down on the press.28 Asquith, a facilitator rather than a dictatorial prime minister, also set up a new committee under Winston Churchill to consider how Britain would tackle ‘Aliens in Time of War’. With foreigners and exiles at the heart of this scare, the government created a register of aliens living in Britain. By 1913, it would have 11,000 Germans on this list, and had already prepared internment legislation.29 Notwithstanding domestic spy-fever, on the eve of the First World War much British intelligence activity lay elsewhere. Intrepid consuls, attachés and military officers carried out most of the spying on German armament programmes, while MI6 relied on the collection of specialist journals by travellers, or open observations, rather than actual espionage. Despite a lack of coordinated assessment, this material gradually filtered up into the higher reaches of government and influenced Britain’s diplomatic and strategic behaviour.30
The most immediate physical threat to Asquith came not from swarms of German spies, but from other quarters, notably the suffragette movement. In September 1909, two women were busy improving their shooting skills at a rifle range at 92 Tottenham Court Road with the rather improbable name of ‘Fairyland’. They intended to assassinate the prime minister, who was a firm opponent of votes for women. The two would-be assassins planned to join a group of suffragettes who had been picketing the gates of Parliament for eight weeks. Asquith passed them frequently, and therefore presented a tempting close-range target. Fortunately for the prime minister, the police received a tip-off. The informant was a Mrs Moore, a member of the Women’s Freedom League, but also a close friend of Asquith’s sister-in-law. She was an advocate of peaceful protest, and spent a great deal of time trying to dissuade her fellow suffragettes from violent acts.
Moore produced a letter from one of the two women who had been practising with a revolver.31 She refused to name names, but the police made enquiries at the shooting range, whose owner, Henry Morley, told them that two suffragettes had indeed been practising with a Browning automatic pistol. Their alarm was increased by the knowledge that the same range, and the same type of pistol, had been used only months earlier by an assassin who had killed Sir William Curzon-Wylie, aide to the secretary of state for India. Although undercover officers hung about for some days afterwards, neither woman returned. This left Asquith’s