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 act 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 the 4th of
August, 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--upward of 200--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 Aug. 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 organization which had been established before the war, it is still
necessary to take the most rigorous measures to prevent the
establishment of any fresh organization and to deal with individual
spies who might previously have been working in this country outside the
organization, or who might be sent here under the guise of neutrals
after the declaration of war. In carrying this out