The major problems inside MI5 concern its relationship with the former Prime Minister Harold Wilson. As the Minister responsible for trade in the Attlee Government, he attempted to increase exports to the USSR. He constantly ran up against United States Government opposition towards any growth in such trade. Wilson felt that the United States used the hysteria of the cold war to prevent Britain from increasing its trade with the USSR. His was not a position that was likely to be viewed with favour in MI5. In fact, there was near hysteria in MI5 when he was sent to the USSR to negotiate the sale of 20 advanced jet engines. Wilson was only a junior Minister carrying out a Cabinet decision, but from that point on he was viewed with suspicion by MI5 officers.
When the unexpected death of Hugh Gaitskell led to the election of Wilson in 1963, MI5 immediately tried to recruit Wilson's campaign manager, George Caunt, to spy on the Labour leader. Shortly before the 1964 election, the FBI told MI5 that it had discovered a KGB mole who had been operating inside MI5 in the key post-war period. The fact that Sir Anthony Blunt was a KGB agent and had close connections with the Queen was certain to create a spy scandal as damaging as that of Kim Philby. Even worse for MI5 was the knowledge that it had been tipped off about Blunt's spying a decade earlier and had failed to take action. It now feared that Wilson would use the opportunity of the scandal to dismember its organisation. Sir Roger Hollis, then director-general of MI5, and Arthur Martin, head of the counter-espionage department, decided on a cover-up and did not even tell the outgoing Tory Prime Minister, Harold Macmillan. Instead, Blunt was granted immunity and was interrogated by Peter Wright, who made the position clear in Spycatcher, when he wrote: "We had strict orders from successive Director-Generals to do nothing that might provoke Blunt to go public." All that was concealed from Wilson when he became Prime Minister, and he was also not informed when Hollis and his deputy, Graham Mitchell, eventually came under suspicion as KGB moles.
Other news was kept from Wilson. In 1961, Anatoli Golitsin, a KGB defector, had arrived in the USA with all sorts of wild allegations few of which yielded anything of substance except the identity of the Admiralty spy, John Vassall. By coincidence, shortly after Wilson's election as Leader of the Opposition, Golitsin was sent to Britain to be interviewed by MI5. His agreed fee was £10,000 a month - £70,000 at today's prices - which was a considerable incentive to keep the interest of his MI5 hosts. Although he had made no mention of it during his two-year interrogation in the USA, Golitsin now told MI5 that he had heard of a KGB plot to kill the leader of a west European political party so that its man could take over. That was all that Peter Wright and other extreme right-wingers inside MI5 needed to confirm the suspicions that had been hanging around ever since the jet engine trade deal and Wilson's annual visits to the USSR while in opposition. They believed that the assassinated party leader had to be Gaitskell.
Oblivious to the suspicions of MI5 and the CIA, the new Labour Prime Minister Wilson issued instructions that MI5 was to stop tapping the telephones of Members of Parliament, although it never occurred to him that MI5 could continue to get access to the information gleaned from taps on Members of Parliament run by the CIA or GCHQ. He also instructed that MI5 should stop using Members as agents without knowing that one Tory Member, Captain Henry Kerby, had been used by MI5 to ingratiate himself with Wilson's shadow Cabinet colleague George Wigg by spying on the Tory party for Wigg. It gives one great encouragement that such people might have a greater role in law enforcement in the future.
The instructions from Wilson caused deep resentment inside MI5, where some officers retaliated by leaking damaging bits of gossip about members of Wilson's Government from MI5 files to the press. That was of course a breach of the Official Secrets Act 1911, but no one has ever been prosecuted.
MI5 believed that seven members of Wilson's Government and three other Labour Members of Parliament were either spies or at the very least security risks. Only one of those 10, Will Owen, the Member of Parliament for Morpeth, eventually turned out to be guilty. He had been taking £500 a month from Czechoslovakian intelligence in exchange for low-grade information that it could most probably have got cheaper by buying Hansard and reading the quality press. All the other names on MI5's list were completely innocent, but that did not stop MI5, in particular Peter Wright, hounding Bernard Floud, who had been devastated by the death of his wife. MI5 pursued him until he finally committed suicide in a moment of despair.
When Treasury Minister Niall MacDermot had his promotion to the Cabinet blocked following MI5 pressure on Wilson, he resigned from politics in disgust. The other seven Members on MI5's list were John Diamond, Tom Driberg, Judith Hart, Stephen Swingler, John Stonehouse, Barnet Stross and, of course, Wilson.
The MI5-inspired rumours about Wilson eventually reached the ears of former Prime Minister and Leader of the Opposition, Sir Alec Douglas-Home, who asked James Scott-Hopkins, a former MI6 officer who had become a Tory Member of Parliament, to conduct his own investigation to discover whether there was any danger of Wilson's being blackmailed.
In the summer of 1967, people from MI5 met people from the CIA, the FBI and the Australian and New Zealand security services in Melbourne, Australia, where they were addressed by Golitsin about his Wilson allegations.
Matters began to hot up when the press baron Cecil King, a long-standing MI5 agent, began to discuss the need for a coup against the Wilson Government. King informed Peter Wright that the Daily Mirror would publish any damaging anti-Wilson leaks that MI5 wanted aired, and at a meeting with Lord Mountbatten and the Government's chief scientific adviser, Solly Zuckerman, he urged Mountbatten to become the leader of a Government of national salvation. Lucky old Britain. Zuckerman pointed out that that was treason, and left the meeting. The idea came to nothing because of Mountbatten's reluctance to act.
The late Harold Wilson was not the only one under suspicion. While the right hon. Member for Old Bexley and Sidcup (Sir E. Heath) was Leader of the Opposition, the Tory Member of Parliament, Captain Henry Kerby - as I have explained, he was an MI5 agent who had ingratiated himself with George Wigg - was used to spread rumours that the right hon. Gentleman was a homosexual who had had an affair with a Swedish diplomat.
Doubts about the right hon. Member for Old Bexley and Sidcup were not confined to the more extreme elements who clustered round Peter Wright. The newly appointed head of MI5, Mr. Hanley - otherwise known as Jumbo - did not inform the right hon. Gentleman that investigations were taking place to try to determine whether Sir Roger Hollis had been a KGB agent.
The head of MI5 did not inform the Leader of the Opposition of MI5's doubts about Wilson, either, or reveal the contents of the file on Wilson that he had inherited from his predecessor, Furnival Jones, and which was kept in his safe, filed under the name "Henry Worthington".
The second factor that increased MI5's alarm at the time was the rise in trade union militancy and the swing to the left in the Labour party. Any pretext that MI5 existed to catch Russian spies went right out of the window at that point. From 1972, there was a vast growth in the sections of MI5 that were involved with domestic surveillance.
Trade unionists, peace campaigners, Cabinet Ministers and political activists in their tens of thousands became the objects of illegal telephone taps and letter intercepts. Recruitment of agents on a scale not considered necessary even at the height of the cold war meant that, by the mid-1970s, even a small group of left-wingers meeting anywhere was likely to have an MI5 agent reporting back on its activities. By the end of the 1970s, 2 million British citizens had security files held on them by MI5.
A constant drip of innuendo about Wilson's loyalty was fed by MI5 to Private Eye, and Michael Halls, the liaison officer between No. 10 and MI5, considered Marcia Williams to be a security risk and funnelled damaging smears about her and Wilson to Private Eye. As Peter Wright put it in his book: "most people in MI5 didn't have a duty to Parliament. They have a duty to the Queen... It's up to us to stop Russians getting control of the British government."
Although it is easy to dismiss some of what I have described as the work of a lunatic fringe, the views of MI5 chief Sir Michael Hanley are well known. When he was asked at a seminar for junior MI5 officers what would happen if Michael Foot became Prime Minister, he replied: "I and every other officer in the service will have to consider our position."
Other officers in MI5 did not share Hanley's sense of resignation, and 30 MI5 officers, including Peter Wright, engaged, on Wright's own admission, in 23 criminal conspiracies and committed 12 acts of treason against the elected Government of the day.
Finally, what was happening came to the attention of Sir Maurice Oldfield, then head of MI6, who took Wright to dinner at Lockets restaurant in July 1975 and asked him about the extent of the plot in MI5 against Wilson. Having heard Wright out, Oldfield told him to put MI5 chief Hanley in the picture. This Wright did the next day, and in his book he says: "Hanley . . . went white as a sheet . . . he was learning that half of his staff were up to their necks in a plot to get rid of the Prime Minister."
When we consider that record, we realise that it involves more than one or two eccentrics such as Peter Wright, and that there is clearly a culture of extreme right-wing politics in MI5, which has been there throughout this century. Occasionally there are brought to the surface very deep links with individual Conservative Members of Parliament who have been able to use MI5, disinformation and black propaganda to damage Labour Members of Parliament and Governments.