Ace of Spies

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Ace of Spies Page 15

by Andrew Cook


  Bearing in mind what we already know of his motivations and priorities, what personal reasons might he have had for wanting to return to Russia in such haste? Once the Bolsheviks had taken power it would not have been easy for a non-Russian civilian (as ‘Sidney Reilly’ officially was) to gain entry.

  It is most likely that in 1914 Reilly’s plan was to go to New York to make as much money as he could from war contracts while the conflict lasted. Britain was not alone in thinking the war would be ‘over by Christmas’, and he no doubt wanted to make his mark before it ended. It is equally likely that most of his possessions and valuables remained behind in St Petersburg pending his return. The abdication of the Tsar in March 1917 would not have particularly unnerved him for the Provisional Government was resolved to continue the war against Germany as an ally of France and Britain, and many assumed that the Tsar’s overthrow would actually restore Russia’s fortunes on the battlefield. Furthermore, the Provisional Government’s assumption of power would not have had any adverse effects on his ability to re-enter the country or to retrieve money or property lodged there. The threat of a Bolshevik seizure of power was something entirely different. If successful, there was a strong possibility that they would seal off the country to foreigners, and there was no telling what might happen in such revolutionary upheaval to any valuables he had secreted away.

  If he actually had a wife and children in Petrograd, as Rodkinson alleged, he may well have wanted to get out to them now that they were effectively trapped. In support of this theory it should be noted that when, in November 1911, Reilly had briefly been under surveillance from Russian counter-intelligence, letters addressed to him had been intercepted from his ‘wife’. She was referred to in the surveillance report as, ‘the daughter of a Russian general living abroad’.18 This wife could not be Margaret, who, although living abroad, was not the daughter of a Russian general. Neither could she be Nadine, the daughter of a colonel, who in 1911 was living in St Petersburg with her husband Petr at 2 Admiralty Quay, several blocks away from Reilly’s apartment at 22 Novo Isaakievskaya. As another intriguing aside, the Alphabetical Directory of the Inhabitants of the City of St Petersburg, contains the name of one Anna Reile, who appears in the editions for 1913, 1914 and 1916.19 In addition, it has already been noted in Chapter Three that on enlistment Reilly had to declare the name of the person to be informed in the event of him becoming a casualty of war. That person is recorded as ‘Mrs A. Reilly of 120 Broadway, New York City’. The address was, of course, Reilly’s office, then managed by two reliable associates, Dale Upton Thomas and Alexandre Weinstein. Nadine was then living outside New York and was well provided for by bank accounts he had set up before departing. If Mrs A. Reilly was Anna, the reason she was to be specially taken care of may well have been the children. While his motives for volunteering remain somewhat open to question, the months between his enlistment in Toronto and his return to Russia are vividly, and at times amusingly, recounted in the annals of SIS and MI5.

  Thirteen days after the confirmation of his commission as a second lieutenant in the RFC, Reilly’s name appears on a Canadian roster, dated 3 December 1917,20 of officers who would shortly be posted overseas. In Reilly’s case this meant England, where he arrived on a chilly New Year’s Day and booked into suite 32 at the Savoy Hotel,21 with lieutenants H.A. Kelly and M. Marks. After a week Kelly was posted to France and Marks to 39 Squadron in Shropshire. Reilly, though, ventured but a short distance to lodgings at 22 Ryder Street, St James.

  On 13 January he met Maj. Scale, who had arrived in London from Petrograd on 9 January.22 Scale briefed him on the formalities that must be dispensed with before his application could be taken further. These formalities clearly included the submission of testimonials and supporting documentation, for on 19 January he wrote to Col. Byron at the War Office, as directed by Scale:

  Sir,

  I have the honour to present:

  1. A letter from Mr Owens-Thurston, a director of Vickers Ltd.

  2. The original and translation of a certificate issued to me by the General Quarter Master of the Russian Army.

  3. I have seen Gen. Germonius, chief of the Russian Mission and he will be pleased to reply to any enquiry made about me.

  4. May I also refer you to Maj. J.F.G. Strubell RFC (Room 240, Air Board Offices, Hotel Cecil. Tel. Regent 8000, ext. 1240), who is the officer who recruited me for the RFC in Canada, and who could give full information about my circumstances and standing in New York.

  Trusting that the above may be sufficient for the purpose you have in view.

  I have the honour to be,

  Sir

  Your obedient servant

  S.G. Reilly, 2/Lt RFC23

  Attached, on Vickers headed notepaper, was the following testimonial:

  To Whom it May Concern:

  I have pleasure in stating that I have known Mr Sidney G. Reilly for thirteen years, and during that time I have had many opportunities of ascertaining his great abilities as a linguist. He was to my knowledge in Petrograd engaged in a great deal of Russian government business, and his knowledge of Russia always appeared to me to be extensive and accurate, and Russians of high official standing have testified to me as to the good work he did and his extensive knowledge of Russian affairs. I can only testify to his ability as a diplomatic businessman, whether the matter in hand is great or small, and during the thirteen years I have known Mr Reilly I have never heard anything disparaging to his character.

  T.H. Owens-Thurston24

  If Owens-Thurston had really never heard anything disparaging about Reilly he must have been one of the few who had not. On the other hand, the letter does dispel the view ventured by Richard Deacon that Reilly was the great adversary of Vickers. Whilst very much batting for Blohm & Voss, Reilly was careful to cultivate contacts and acquaintances wherever he could, particularly in rival firms such as Vickers.

  The Russian military certificate Reilly enclosed was dated 8 August 1914 and issued by Maj.-Gen. Erdeli:

  By order of the Chief of Staff of the Army, I request that the bearers of the present: the British subject Sidney George Reilly and the Russian subject I.T. Giratovsky be given assistance for the purpose of expeditious and unhindered passage over the frontier.

  The above mentioned persons are commissioned by the Chief of the Artillery Department to acquire material and articles of armament for the needs of our Army.25

  On 30 January SIS sent a standard enquiry form to MI5, with Reilly’s the only name listed:

  Have you any objection to the following being employed by the Intelligence Department?

  Sidney G. Reilly, RFC Club, Bruton Street and 22 Ryder Street, St James.26

  On 2 February MI5 likewise responded to SIS on their standard form of clearance:

  We have nothing recorded against the above. Nothing is known to the prejudice of any of the above by the police.27

  There was one MI5 officer, however, who knew more than most about Reilly and would have been able to give chapter and verse about his mysterious background and clandestine activities – if only he had been able. Whether William Melville’s insight would have prejudiced Reilly’s application in any way was, by 2 February, of little or no consequence. Discharged from duty the previous September with kidney disease, Melville died in Bolingbroke Hospital, Battersea, on 1 February 1918,28 the day before the MI5 memo giving Reilly the all-clear was sent to SIS.

  By March 1918, MI5’s investigation into Reilly’s background was making little headway.

  As a result, an appointment was made for Reilly to attend an interview with C on 15 March at SIS headquarters. While MI5 found nothing detrimental on Reilly, C clearly felt that he needed to know more about the mysterious Mr Reilly. On 28 February he sent a telegram to the SIS station in New York,29 informing them of the task he had in mind for Reilly and asking for full particulars on his reputation and background. None of these enquiries would, of course, have been necessary if Reilly had been a known quan
tity.

  At 10.00 a.m. on 4 March a cable was received at SIS Headquarters from Norman G. Thwaites (NG) in New York, replying to C’s enquiry:

  With reference to your telegram No. 206 of the 28th; SYDNEY REILLY is a British subject married to a RUSSIAN JEWESS who has made money since the beginning of the war through influence with corrupted members of the Russian purchasing commissions. He is believed to have been in PORT ARTHUR in 1903 as a spy for Japan. We kept him under observation in 1916. We consider him untrustworthy and unsuitable to work suggested.

  NG30

  Not to be deterred by this damning reply, C sent another telegram to New York the following day seeking further clarification. In the meantime, MI5 were also asked to keep a tab on Reilly pending the progress of his application. On 9 March they reported that despite placing him under surveillance for three days, ‘nothing was discovered about his movements, owing to the fact that he usually moved about in taxis and it was nearly always impossible to get another cab’.31 Conjuring up visions of a Keystone Cops chase, the ‘tailers’ were reduced to catching buses to the destinations Reilly was thought to be heading for – usually the Savoy Hotel. On one occasion they did actually manage to hail down a cab, only to be told by the driver that Reilly’s cab had a more powerful engine and was not worth his while following!

  MI5 received a wealth of reports on Reilly’s unsavoury past.

  When Reilly made an application to the War Office for intelligence work in January 1918, he was careful to submit glowing testimonials and references.

  The watch on his Ryder Street lodgings and interviews with others at the address led MI5 to report that he was ‘very respectable, pays bills quite regularly, lunches and dines at the Savoy and Berkeley Hotels and is always in by midnight’.32

  At 2.20 p.m. on 14 March, New York’s reply to C’s second cable was received at Whitehall Court:

  Your telegram No. 210 of 5th:

  Official of National Powder Bank has given us the following confidential statement on man in question whom he has known for several years: A shrewd businessman of undoubted ability but without patriotism or principles and therefore not to be recommended for any position which requires loyalty as he would not hesitate to use it to further his own commercial interests. He has been connected with Government contracts in RUSSIAN–JAPANESE and present wars and has undeniably excellent knowledge of those countries.

  Above opinion precisely confirmed by our own estimate of man.

  NG33

  The following day, with no knowledge of the cables that had been criss-crossing the Atlantic on his behalf, Reilly presented himself at 2 Whitehall Court to keep his appointment with ‘C’.34 Meeting ‘the Chief’ was a formality that all potential agents had to undertake, and Reilly was no exception. Paul Dukes, a future friend and SIS colleague of Reilly, gave a rare and unique account of this no doubt awesome experience in his book, Red Dusk and the Morrow. On arrival at Whitehall Court, Dukes was met by a nameless colonel and escorted to C’s office:

  MI5’s surveillance of Reilly proved no easy task.

  We entered the building and the lift whisked us up to the top floor. Leaving the lift my guide led me up one flight of steps so narrow a corpulent man would have stuck tight, round unexpected corners, and again up a flight of steps.

  ‘The sanctum of the Chief’ was ‘a low dark chamber at the extreme top of the building’. The colonel knocked, entered, and stood at attention. A nervous Dukes followed. He recalled:

  The writing desk was so placed with the window behind it that on entering everything appeared only in silhouette. It was some seconds before I could distinguish things. A row of half a dozen extending telephones stood at the left of a big desk littered with papers. On a side table were numerous maps and drawings, with models of aeroplanes, submarines and mechanised devices, while a row of bottles of various colours and a distilling outfit with a rack of test tubes bore witness to chemical experiments and operations. These evidences of scientific investigation only served to intensify an already overpowering atmosphere of strangeness and mystery. But it was not these things that engaged my attention as I stood nervously waiting. My eyes fixed themselves on the figure at the writing table. This extraordinary man was short of stature, thick set, with grey hair covering a well-rounded head. His mouth was stern, an eagle eye, full of vivacity, glanced – or glared, as the case might be – piercingly through a gold-rimmed monocle. The coat that hung over the back of the chair was that of a naval officer.35

  Quite what impression C, Mansfield Cumming, made on Reilly is unknown. Cumming himself briefly recorded his impressions of Reilly in his diary for 15 March:

  Scale introduced Mr Reilly who is willing to go to Russia for us. Very clever – very doubtful – has been everywhere and done everything. Will take out £500 in notes and £750 in diamonds which are at a premium. I must agree tho’ it is a great gamble as he will visit all our men in Vologda, Kief, Moscow etc.36

  The impression that Reilly was ‘very doubtful’ could only have been reinforced by the arrival of the final cable from New York at 2.25 p.m. on 21 March:

  Further my telegram No. 201 of 13th:

  MACROBERTS reports he likes Reilly personally but knows little of him. Another official of the bank gives me the following information from a man who has known REILLY for years: R is GREEK Jew: very clever: entirely unscrupulous. Present war has made about two million dollars on Russian contracts. Has connections in almost every country including Germany, Japan and Russia. ENDS. In connection with the above may I point out that there must be a strong motive for REILLY leaving profitable business here and wife of whom he is said to be very jealous, to work for you.

  NG37

  C had a reputation as a risk taker who was willing to go against the grain. There could be no greater demonstration of this than his decision to give Reilly a chance in spite of the volumes of negative feedback he had so far received. The risk, in C’s mind, must have been far outweighed by the vital operational need for reliable Russian intelligence. Negotiations between the Bolsheviks and the Germans had been taking place at Brest Litovsk, on and off, since 22 December 1917, and it was becoming increasingly apparent that matters were now coming to a head. While C was still exchanging cables with New York, the two sides finally signed the Treaty of Brest Litovsk on 3 March. It was a bitter pill for the Russians to swallow, involving a great loss of land and swingeing reparation payments. Lenin, however, was determined to pull out of the war, as he knew his infant regime’s survival depended upon it. For the Germans it meant they could now throw their full weight against the Allies on the Western Front.

  The War Cabinet in London, and the Allies collectively, now had two potential choices; they could either make a renewed attempt to entice the Bolsheviks back into the war against Germany, or they could intervene in Russia in the hope that the Bolsheviks could be toppled in favour of a pro-war government. Either way, the need for good intelligence sources in Russia was now more important than ever.

  On 22 March, the day after the final cable from ‘NG’ was received, C and SIS colleague Col. Claude Dansey visited a diamond dealer in the City of London by the name of Schuyler and purchased diamonds to the value of £75038 for Reilly to take to Moscow.

  That same day MI5 were beginning what they thought would be a routine enquiry to confirm the biographical details Reilly had given on his application. Their memorandum, under Reilly’s name, addressed to the headquarters of Irish Command at Parkgate, Dublin, states:

  We should be glad to know if a man of the above name is registered as having been born at Clonmel on 24 March 1874, and any partic-ulars you can let us have concerning his parents. Will you kindly let us have an answer as soon as possible, as the matter is urgent.39

  By 30 March, with no sign of a reply, MI5 sent a reminder memo. This clearly did the trick, for the following day Irish Command responded:

  Reference your 267275/D of 22 and 30 March, the Police Department report that there is no record
in the register of this man’s birth in Clonmel. Further enquiries are being made. (for) Major I.H. Price40

  It was a further three days before MI5 alerted Maj. Kendall of SIS to the fact that C’s new agent was not all that he claimed. By this point, the die had already been cast, for Reilly, or ST141 as he was now code-named, was aboard the Danish Merchant ship Queen Mary, steaming towards the Russian port of Archangel.

  NINE

  THE REILLY PLOT

  Four days after his departure, C sent a cable to the British mission in Vologda, alerting them of Reilly’s arrival:

  On 25 March, Sydney George Reilli, lieutenant in the RFC, leaves for Archangel from England. Jewish-Jap type, brown eyes very protruding, deeply lined sallow face, may be bearded, height five foot nine inches. He will report during April. Carries code message of identification. On arrival will go to Consul and ask for British passport officer. Ask him what his business is and he will answer ‘Diamond Buying’. He has sixteen diamonds value £640 7s 2d as most useful currency. Should you be short of funds he has orders to divide with you. He will be at your disposal, utilise him to join up your organisation if necessary as he should travel freely. Return him to Stockholm end of June. More to follow.1

  Instead of following orders and disembarking at Archangel, Reilly left the ship at Murmansk. The port itself was in the hands of a company of British marines, who had been sent in on 6 March to guard Allied war materials thought to be at risk since the Bolshevik’s treaty with Germany. On leaving the merchant ship Queen Mary, Reilly was stopped for a routine inspection of documents and promptly arrested. He was confined aboard HMS Glory, where Maj. Stephen Alley of SIS, who was on his way back to London, was summoned by Admiral Kemp to examine him. ‘His passport was very doubtful, and his name was spelt REILLI. This, together with the fact that he was obviously not an Irishman, caused his arrest’, said Alley.2

 

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