"It was clearly ascertained five or six years ago that the Germans were making great efforts to establish a system of espionage in this country, and in order to trace and thwart these efforts a Special Intelligence Department was established by the Admiralty and the War Office which has ever since acted in the closest co-operation with the Home Office and Metropolitan Police and the principal provincial Police Forces. In 1911, by the passing of the Official Secrets Act, 1911, the law with regard to espionage, which had hitherto been confused and defective, was put on a clear basis and extended so as to embrace every possible mode of obtaining and conveying to the enemy information which might be useful in war. "The Special Intelligence Department, supported by all the means which could be placed at its disposal by the Home Secretary, was able in three years, from 1911 to 1914, to discover the ramifications of the German secret service in England. In spite of enormous efforts and lavish expenditure of money by the enemy, little valuable information passed into their hands. The agents, of whose identity knowledge was obtained by the 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 Acts 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 August 4, 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 (upwards of two hundred) 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.