W. B. Findley (Jim Finney) worked as an agent for George Makgill, the head of the Industrial Intelligence Bureau (IIB). His code-name was Furniture Dealer. Makgill reported to Desmond Morton, the head of the Secret Intelligence Service's Section V, dealing with with counter-Bolshevism, that Finney had infiltrated the Communist Party of Great Britain.
In the 1923 General Election, the Labour Party won 191 seats. Although the Conservatives had 258, Ramsay MacDonald agreed to head a minority government, and therefore became the first member of the party to become Prime Minister. As MacDonald had to rely on the support of the Liberal Party, he was unable to get any socialist legislation passed by the House of Commons. The only significant measure was the Wheatley Housing Act which began a building programme of 500,000 homes for rent to working-class families.
Members of establishment were appalled by the idea of a Prime Minister who was a socialist. As Gill Bennett pointed out: "It was not just the intelligence community, but more precisely the community of an elite - senior officials in government departments, men in "the City", men in politics, men who controlled the Press - which was narrow, interconnected (sometimes intermarried) and mutually supportive. Many of these men... had been to the same schools and universities, and belonged to the same clubs. Feeling themselves part of a special and closed community, they exchanged confidences secure in the knowledge, as they thought, that they were protected by that community from indiscretion."
In September 1924 MI5 intercepted a letter signed by Grigory Zinoviev, chairman of the Comintern in the Soviet Union, and Arthur McManus, the British representative on the committee. In the letter British communists were urged to promote revolution through acts of sedition. Hugh Sinclair, head of MI6, provided "five very good reasons" why he believed the letter was genuine. However, one of these reasons, that the letter came "direct from an agent in Moscow for a long time in our service, and of proved reliability" was incorrect.
Vernon Kell, the head of MI5 and Sir Basil Thomson the head of Special Branch, were also convinced that the letter was genuine. Kell showed the letter to Ramsay MacDonald, the Labour Prime Minister. It was agreed that the letter should be kept secret but someone leaked news of the letter to the Times and the Daily Mail.
The letter was published in these newspapers four days before the 1924 General Election and contributed to the defeat of MacDonald and the Labour Party. In a speech he made on 24th October, Ramsay MacDonald suggested he had been a victim of a political conspiracy: "I am also informed that the Conservative Headquarters had been spreading abroad for some days that... a mine was going to be sprung under our feet, and that the name of Zinoviev was to be associated with mine. Another Guy Fawkes - a new Gunpowder Plot... The letter might have originated anywhere. The staff of the Foreign Office up to the end of the week thought it was authentic... I have not seen the evidence yet. All I say is this, that it is a most suspicious circumstance that a certain newspaper and the headquarters of the Conservative Association seem to have had copies of it at the same time as the Foreign Office, and if that is true how can I avoid the suspicion - I will not say the conclusion - that the whole thing is a political plot?"
After the election it was claimed that two of MI5's agents, Sidney Reilly and Arthur Maundy Gregory, had forged the letter and that Major George Joseph Ball (1885-1961), a MI5 officer, leaked it to the press. In 1927 Ball went to work for the Conservative Central Office where he pioneered the idea of spin-doctoring. Later, Desmond Morton, who worked under Hugh Sinclair, at MI6 claimed that it was Stewart Menzies who sent the Zinoviev letter to the Daily Mail.
In his book, The Defence of the Realm: The Authorized History of MI5 (2009), Christopher Andrew argues that on 9th October 1924 SIS forwarded the Zinoviev letter to the Foreign Office, MI5 and Scotland Yard with the assurance that “the authenticity is undoubted” when they knew it had been forged by anti-Bolshevik White Russians. Desmond Morton, the head of SIS, provided extra information about the letter being confirmed as being genuine by an agent, Jim Finney, who had penetrated Comintern and the Communist Party of Great Britain. Andrew claims this was untrue as the so-called Finney report does not make any reference to the Zinoviev letter.
After the death of George Makgill, Finney worked for John Baker White, the director of the Economic League. According to one source he worked with White on the investigation into the suspicious fire on the French Liners, the Georges Philippar in May 1932 and the L'Atlantique in January 1933.
W. B. Findley (Jim Finney) died in 1955.