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The Cicero Spy Affair: German Access to British Secrets in World War II (Perspectives on Intelligence History) PDF

281 Pages·1999·1.17 MB·English
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The Cicero Spy Affair THE CICERO SPY AFFAIR German Access to British Secrets in World War II RICHARD WIRES Perspectiveson IntelligenceHistory DavidKahn,SeriesEditor LibraryofCongressCataloging-in-PublicationData Wires,Richard,1930– TheCicerospyaffair : GermanaccesstoBritishsecretsinWorld WarII / RichardWires. p. cm.—(Perspectivesonintelligencehistory,ISSN1525–9544) Includesfilmography. Includesbibliographicalreferencesandindex. ISBN0–275–96456–6(alk.paper) 1. Bazna,Elyesa,1904–1970. 2. WorldWar,1939–1945—Secret service—Germany. 3. Espionage,German—GreatBritain. 4. Spies— Germany. I. Title. II. Series. D810.S8B399 1999 940.54'8743—dc21 98–50249 BritishLibraryCataloguinginPublicationDataisavailable. Copyright(cid:1)1999byRichardWires Allrightsreserved.Noportionofthisbookmaybe reproduced,byanyprocessortechnique,withoutthe expresswrittenconsentofthepublisher. LibraryofCongressCatalogCardNumber:98–50249 ISBN:0–275–96456–6 ISSN:1525–9544 Firstpublishedin1999 PraegerPublishers,88PostRoadWest,Westport,CT06881 AnimprintofGreenwoodPublishingGroup,Inc. www.praeger.com PrintedintheUnitedStatesofAmerica TM Thepaperusedinthisbookcomplieswiththe PermanentPaperStandardissuedbytheNational InformationStandardsOrganization(Z39.48–1984). 10 9 8 7 6 5 4 3 2 1 CopyrightAcknowledgments ThejacketphotoofSirWinstonChurchillwithSirHugheKnatchbull-Hugessenis usedwithpermissionoftheImperialWarMuseum.ThejacketphotoofAdolfHitleris courtesyoftheU.S.HolocaustMemorialMuseum. Everyreasonableefforthasbeenmadetotracetheownersofcopyrightmaterialsinthis book,butinsomeinstancesthishasprovenimpossible.Theauthorandpublisherwill begladtoreceiveinformationleadingtomorecompleteacknowledgmentsinsubsequent printingsofthebookandinthemeantimeextendtheirapologiesforanyomissions. For Marion Siney Contents Preface ix 1. The‘‘Notorious’’Case 1 2. TurkeyandthePowers 13 3. TheVolunteerSpy 29 4. SellingtheSecrets 43 5. Germany’sIntelligenceLabyrinth 57 6. QuestionsandDoubtsinBerlin 69 7. OperationBernhard 85 8. Cicero’sOutstandingPeriod 97 9. TheContestforTurkey 113 10. SearchingforanAgent 129 11. Cicero’sLastAchievements 143 12. AnAmericanSpy 159 13. De´nouementandAftermath 173 viii Contents 14. TheAffairinRetrospect 187 Notes 205 Filmography 243 SelectedBibliography 247 Index 259 Aphotoessayfollowspage142. Preface Intheextensiveliteratureaboutespionageaffairsandintelligenceac- tivities during World War II the episode known as Operation‘‘Cicero’’ has gained prominence and popularity, because of its remarkable characterandironies.Formorethanfourmonthsduringthewinterof 1943–1944thevaletofBritain’sambassadorinneutralTurkeyphoto- graphedsecret papers that his employer failed to safeguard properly; bysellinghisundevelopedfilmstoarepresentativeofGermanintelli- genceinAnkaraforareportedtotalof$1.2milliontheservantbecame history’sthenmosthighlypaidspy.Theaccesstooneofitsopponents’ most important embassies marked Germany’s outstanding achieve- ment in an otherwise poor record of secret service work. But little came of the success. Manyof the documentswereextremelyvaluable, but the dictatorship never used the information effectively; theenter- prising spy escaped being caught but soon discovered that his money was mostly counterfeit. References to the affair have become a staple of intelligence lore, usuallywith emphasis onthe mostsensationalel- ements and often with little regard for the actual facts, but there has not yet been a full and objective account of the episode. A careful and comprehensive analysis of the available evidence and troublesome issues is needed, not only to identify and counteract the distortions and misconceptions so commonly found but also to examine the ex- traordinary events and conflicting views within their larger histori- cal context. My interest in the affair began with the first published accounts of boththeespionageandcounterfeitingoperations,anditcontinuedover the years because of reminders through travels and other contacts. While staying with friends one summer in rural Austria I visited the nearby caves at Redl-Zipf,wheretheforgeryteamhadbeenhurriedly x Preface moved. On later occasions I often toured the lake and river region, where crates of bogus notes were abandoned in the war’s final weeks. DuringearlyvisitstoTurkeyIstayedatthenow-replacedParkHotel inIstanbul,wheresomanyforeignersinWorldWarIIcarriedontheir intrigues.IsawtootheC¸elikPalaceHotelinBursa,whichthespyhad been expanding when word came from the Bank of England that his British banknotes were forged. When the former ‘‘Cicero’’ belatedly published his own account of the espionage, stressing how a young Germansecretary’sdefectiontotheAllieshadthreatenedhissafety,I discoveredthatsheandIsharedaClevelandbackgroundandties.Also, duringanintelligenceassignmentinMunich,wherethefrustratedex- spylaterdied,IacquiredaprofessionalappreciationoftheCicerocase’s many oddities and ironies. Then the controversy over the affair that erupted in Britain in the 1970s revealed the lack of consensus about what had happened. Only later did I consider preparing a detailed study of the episode, still surprised that no one else had yet taken on the task, but learning too that a degree of obscurity best suited many people. The activities and operations of spies and intelligence agencies are understandably shielded in official secrecy, necessary for security but alsoreadilyinvokedforlesscommendablereasons—thehabitcreating amystiquethatconcealsfailuresandencouragesconjectureandrumor. Such factors are present here. The sources available for inquiry into the Cicero affair are substantial, despite the many gaps. Some docu- ments, like reports of the intelligence service that ran the operation, have disappeared; other records, such as items covering the investi- gations of a security leak, remain closed. But sizable bodies of diplo- maticmessagesexchangedbetweentheBritishandGermanembassies andtheirrespectivecapitalsprovideahelpfulsubstitute.Inparticular they permit an understanding of the powers’ opposing policies and of the difficulties that each side experienced. There are useful memoir accounts by the three Germans most directly involved in buying and analyzing the spy’s films. Although each writer had self-serving mo- tives for publishing his book, and all distorted the facts to suit their separate intentions and views, the different perspectivesandinsights tend to complement one another. For his part the spy too belatedly recorded his experiences; his recollections are untrustworthy, though theyarethesoletestimonytouchinguponcertainactivities.Especially when he discusses his thoughts and self-image, and also when others dothesame,theirexactwordsrevealmuchabouttheindividuals.Com- ments by the victims of the spying have been meager. Given the cir- cumstances and embarrassmentof the affair, fewBritishparticipants havemadepublicstatementshelpfulinreconstructingit. Since the complete story of the espionage case involves more than

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The episode of the opportunistic valet of Britain's ambassador to neutral Turkey during World War II--dubbed "Cicero" for the eloquence of the top-secret material he appropriated from his employer Sir Hughe Knatchbull-Hugessen and sold to the Nazis--is a staple of intelligence lore. Yet this remarka
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