The Second World War

Naval Intelligence began to grow as an entity in Canada after the Royal Navy was charged with leading intelligence operations in Halifax during the First World War. In 1921, Canada joined the British Worldwide Intelligence Organization, with the establishment of a North American Station and Directorate of Naval Plans and Intelligence. Naval Intelligence in Canada, however, remained virtually non-existent until expansion of the size and role of the Royal Canadian Navy during the Second World War. The Directorate of Naval Intelligence emerged in 1939 and played a crucial role in the Allied effort to support convoy operations, intercept and analyze hostile radio communications, and confront the U-boat threat during the Battle of the Atlantic. Naval intelligence specialists also participated in the Special Branch, with officers wearing light green patches on their uniforms to denote their membership. The Naval Intelligence Division had subsections dedicated to general intelligence, foreign intelligence, ship movements (VESCA), naval information, the national distribution authority, mercantile intelligence, Defensively Equipped Merchant Ships (DEMS), and meteorology and oceanography.

Naval intelligence and trade protection in the Atlantic and Pacific during the war was an allied effort involving the United Kingdom, the United States and Canada. Canada, having officially taken over responsibilities for operational command in the North West Atlantic on 1 May 1943, relied on its Operational Intelligence Centre (OIC) at Naval Services Headquarters in Ottawa. The Trade, Intelligence and Signals Division, along with the OIC, remained in place until the end of the war.

Canadian Intelligence Corps (C Int C) Founded

When Canada mobilized in September 1939, Intelligence structures based on British organizations were rapidly developed and intelligence analysts were given new challenges.

As of 16 December 1940, there were about 60 all ranks posted to Canadian Intelligence duties. Foreseeing the need for 200 intelligence personnel, Major John Page proposed that Field Security (FS) functions be separated from the Provost Corps. Moreover, he worked to have an Intelligence Corps, formed in a manner similar to that of the British Intelligence Corps formed on 25 June 1940, recognized.

Establishment of the First Canadian Army in April 1942 led to a tremendous demand for Intelligence specialists, and on 29 October 1942 the C Int C was officially recognized as a Corps. Canadians from universities, colleges, businesses and industries joined the C Int C to participate in a great variety of Intelligence duties; a number became casualties at Dieppe, in Northwest Europe and the Adriatic. Army Intelligence sections or staffs were represented at Army, Corps, Division, and District levels, with seven Field Security Sections in existence as well. By 1943, for the first time in Canadian history, Canadian personnel filled all Intelligence appointments within Canada's Army formations and units.

Canadian Military HQ (CMHQ) Intelligence Section

The Intelligence Section at CMHQ was probably the most important link in the entire intelligence chain during the Second World War. Located in London, England, where the highest Allied planning and control took place, CMHQ was ideally situated to act as a listening post both for the Department in Ottawa and for the Canadian Army Overseas. The CMHQ Intelligence Section initially controlled cipher protection of Army messages between Ottawa and London, and was the agency responsible for security liaison between Canada and Canadian formations in England. It was directly involved in censorship, and later had charge of all aspects of recruiting for the intelligence establishments it helped form. It was also responsible for the training and professional development of all Canadian intelligence personnel, as well as handling of enemy prisoners of war.

As Canadian units moved overseas, personnel who appeared suitable for intelligence duties were sent to British Intelligence Schools. Handling of cipher messages was one of the first priorities, and the initial Canadian personnel to be trained came from First Canadian Division, which had arrived in England in December 1940. RCAF Air Intelligence Liaison officers, who would work closely with Army formation Intelligence staffs, were assigned to I Canadian Corps HQ.

Tactical and Operational Intelligence

Methods of exploiting information for Intelligence purposes at the tactical level were further refined from those used in the First World War. Artillery Intelligence and Engineer Intelligence methods were developed. Counter-Intelligence (CI) operations were particularly important during the Northwest Europe campaign. As in the First World War, proper exploitation of PWs and captured enemy documents/equipment was vital. New sources of combat intelligence at Corps, Division and Brigade levels included civilians from liberated or captured areas, enemy communications, and strategic level analysts conducting various types of research. The efforts of military intelligence analysts were instrumental in providing force protection and mission success in numerous operations and battles.

Casualties

C Int C took is first casualties of the War when Second Canadian Division was committed to its first major combat action, at Dieppe on 19 August 1942. Captain TM Insinger was killed when his landing craft tank (LCT) was blown up, and Captain F. Morgan was killed shortly after he came ashore. In the Field Security group, Company Sergeant-Major J.S. Milne, Sergeant J. Holt and Sergeant W. Corson were killed and five others captured.

Sir William Stephenson

Canadians played an instrumental part in covert HUMINT, SIGINT and espionage activities. C Int C assisted in screening of volunteers chosen for service with Britain's Special Operations Executive (SOE), and would later participate in training at Camp X near Whitby, Ontario.

Sir William Stephenson joined the Royal Canadian Engineers in 1914 and was commissioned in the field. Having endured almost two years in the trenches, Captain Stephenson was returned to England after suffering wounds from a poison gas attack. In 1916 he began service in France as a fighter pilot with the Royal Flying Corps; he was awarded the Distinguished Flying Cross, Military Cross, French Legion of Honour, and Croix de Guerre with Palm. Stephenson shot down 26 hostile aircraft, and was himself shot down over France in 1918 and captured. Within three months, he had gathered sufficient information from a variety of HUMINT sources to escape successfully from a PW camp, return to Allied lines, and submit a detailed report on enemy PW camps.

Stephenson's exploits, wireless traffic abilities, collation skills, and interest in analysis caught the attention of Admiral Sir Reginald Hall, Director of British Naval Intelligence, who became extensively involved in espionage activities. He also led the effort that intercepted and decoded the Zimmerman Telegram, and promoted survival of the small British Secret Intelligence Service (SIS) in the post-war period. As a result of contact with Hall, Stephenson became personally involved in a variety of espionage, sabotage and deception operations. He was also heavily involved in TECHINT and SIGINT activities related to German communications and Enigma cipher machines.

Stephenson participated in re-establishing a working relationship between the British SIS and American Federal Bureau of Investigation (FBI), and established the British Security Co-ordination (BSC) HQ in New York as a base to conduct secret warfare operations from. The BSC eventually included the SOE, SIS, Security Executive, MI-5, and an extensive intelligence-communications web. Bermuda Station was established as a satellite base for various BSC communication-interception activities.

Within Camp X, documents were faked at Station M and communication with agents around the world was achieved through Hydra. Camp X also served as a secure area where agents could be trained and equipped, and guerrilla devices tested.