In 1918, Rear Admiral William Reginald “Blinker” Hall, the Head of Britain’s Naval Intelligence Division (NID) was in need of a new source of intelligence material. NID was in the business of cracking codes—classified communications in which the message’s meaning was replaced by words, phrases, letters, numbers, or other symbols. These missives—military, diplomatic, and naval—told of Imperial Germany’s movements and were invaluable in providing the intelligence necessary to wage a successful war. Almost always, these codes were ciphered, meaning the already-secret messages were encrypted with other letters or symbols transposed over the original to make it even more difficult to crack.
While Blinker Hall’s code breakers could crack these codes given time, the whole business was expedited through the admiral’s covert network of agents who gathered codebooks, cipher keys, and other intelligence material through radio intercepts, captured German vessels, downed zeppelins, spy work, blackmail, and general skullduggery. Armed with these tools, Hall’s code breakers were so capable that they could, in almost real-time, relay the movement of German U-boats, troops, and consular communications to the British government. It was Hall’s code breakers who, in 1917, had deciphered the Zimmerman telegram, in which Germany offered an alliance to Mexico if war broke out between the United States and Germany—one of the contributing reasons for the United States entering the war in 1918.
One of the most important operatives was a janitor in the Imperial German Naval offices who fed cipher keys directly to NID. However, in 1918 he disappeared without a trace, and without a new source of cipher keys, the whole operation slowed and limited the effectiveness of British intelligence. But then the old admiral had an idea.
Hall summoned to his office Lieutenant Commander Guybon Chesney Castell Damant, a 36-year-old gunnery officer from the Isle of Wight who was one of the few commissioned officers in the service who was an expert at deep-sea diving. In 1917, Damant had been tasked by the Admiralty to recover 44 tons of gold bullion (valued in 1917 at $25 million or approximately $1.7 billion today) that had sunk aboard HMS Laurentic to the north of Ireland. Damant’s experiences in the tight confines of the ruined Laurentic made him uniquely qualified for the job Admiral Hall had in mind.
His new mission: command a secret unit of five divers who could wrest Imperial Germany’s codes from the deep. He found it even more exciting than salvaging sunken gold.
In 1917, the Germans had begun a naval offensive against the Allies using U-boats to target Allied shipping. It was at first highly successful, as the innovative weapons surprised merchant ships, sinking them with relative ease, and nearly driving Britain out of the war. By late 1917, anti-submarine measures, including more effective minefields and convoy tactics, started to turn the tide in the Allies' favor. More and more U-boats were being sunk.
Hall realized that the submarines, particularly outbound U-boats from their bases in Belgium, would be carrying aboard the latest cipher keys, code books, and other intelligence material. If Damant could get his Laurentic divers into those wrecks, it could prove to be an intelligence coup.