Editing Operation Bernhard (section)

==Background==

===British paper currency===
[[File:Britannia, detail from a 1931 five pound note.jpg|thumb|upright|Vignette of [[Britannia]] that appeared in the top left of the British notes]]
The designs used on British paper currency at the beginning of the [[Second World War]] were introduced in 1855 and had been altered only slightly over the intervening years.{{sfn|Security by Design, 2007|p=4}} The notes were made from white [[cotton paper|rag paper]] with black printing on one side and showed an engraving of [[Britannia]] by [[Daniel Maclise]] of the [[Royal Academy of Arts]] in the top left-hand corner.{{sfn|Security by Design, 2007|p=4}} The [[Bank of England £5 note|£5]], also known as the White Fiver, measured {{cvt|7+11/16|×|4+11/16|in|mm|round=5<!-- necessary to keep value of 195×120 as used in the citation, template outputs 195×119 -->}},{{sfn|Withdrawn Banknotes Reference Guide|p=23}} while the [[Bank of England £10 note|£10]], [[Bank of England £20 note|£20]] and [[Bank of England £50 note|£50]] notes measured {{cvt|8+1/4|×|5+1/4|in|mm|0}}.{{sfn|Withdrawn Banknotes Reference Guide|pp=29, 35, 43}}

The notes had 150 minor marks that acted as security measures to identify forgeries. These were often assumed to be printing errors, and were changed between issues of notes.{{refn|One example of the marks in question was a small white dot in the i of the word five on a £5 note.{{sfn|Boeykens|2007}}|group=n}} Each note bore an alphanumeric [[serial code|serial designation]] and the signature of the [[Chief Cashier of the Bank of England]].{{sfn|Pirie|1961|p=11}} Prior to the release of any notes by the Bank of England, all serial numbers were recorded in ledgers so the bank could verify its liabilities; these numbers were checked when the notes circulated back through the bank.{{sfn|''The Great Nazi Cash Swindle'', 2004|loc=Event occurs at 32:45–33:25}}{{refn|The practice of recording the notes dated back centuries before the 1940s. The bank notes were originally released as a "receipt for coin", or [[promissory note]].{{sfn|''The Great Nazi Cash Swindle'', 2004|loc=Event occurs at 32:50–33:11}}|group=n}}

A [[watermark]] appeared across the middle of every note; it differed depending on the value of the currency and the alphanumeric serial designation used.{{sfn|Malkin|2008|p=25}} According to John Keyworth, the curator of the [[Bank of England Museum]], as the paper currency had never been successfully counterfeited, the [[Bank of England]] "was a little complacent about the design of its notes and the production of them";{{sfn|''The Great Nazi Cash Swindle'', 2004|loc=Event occurs at 11:52–11:56}} he described the notes as "technologically&nbsp;... very simple".{{sfn|''The Great Nazi Cash Swindle'', 2004|loc=Event occurs at 12:04–12:07}}

===Origins of the plan===
At a meeting on 18 September 1939 [[Arthur Nebe]], the head of the {{lang|de|Reichskriminalpolizeiamt}}—the central criminal investigation department of Nazi Germany—put forward a proposal to use known counterfeiters to forge [[Banknotes of the pound sterling|British paper currency]]. The forged notes—amounting to £30 billion—would then be dropped over Britain, causing a financial collapse and the loss of its [[world currency]] status.{{sfn|Malkin|2008|p=8}}{{sfn|Pirie|1961|pp=2–3}} Nebe's superior officer, [[Reinhard Heydrich]], liked the plan, but was unsure of using the police files to find the available individuals.{{refn|Heydrich was also the head of the [[International Criminal Police Organization]] (now known as INTERPOL), and was concerned that the use of the files of known criminals would discredit Germany's control over the organisation.{{sfn|Malkin|2008|p=5}}|group=n}} [[Joseph Goebbels]], the [[Reichs Ministry of Public Enlightenment and Propaganda|Reich Minister of Propaganda]], described it as "{{lang|de|einen grotesken Plan}}", "a grotesque plan", although he saw it had potential.{{sfn|Nachtstern|Arntzen|2008|p=25}} The main objection to the plan came from [[Walther Funk]], the Reich Minister for Economic Affairs, who said it would breach international law.{{sfn|Malkin|2008|pp=3–6}} [[Adolf Hitler]], the [[Chancellor of Germany|German Chancellor]], gave the final approval for the operation to proceed.{{sfn|Malkin|2008|p=27}}{{refn|The journalist Lawrence Malkin, who wrote a history of Operation Bernhard, outlines a story that Hitler wrote in the margin of the proposal "Dollars no. We are not at war with the USA" and signed his name. Malkin relates that although the story has been repeated in a number of histories, there is no evidence that it is true, and the document has never been located.{{sfn|Malkin|2008|p=27}}|group=n}}

Although the discussion was supposed to be secret, in November 1939 [[Michael Palairet]], [[List of ambassadors of the United Kingdom to Greece|Britain's ambassador to Greece]], met a Russian émigré who gave him full details of the plan discussed at the 18 September meeting; according to the émigré's report, the plan was titled "Offensive against Sterling and Destruction of its Position as World Currency". Palairet reported the information to London, who alerted the [[United States Department of the Treasury|US Department of the Treasury]] and the Bank of England.{{sfn|Malkin|2008|pp=7–9}} Although the Bank considered the existing security measures were sufficient, in 1940 it released a blue emergency [[Bank of England £1 note|£1 note]] which had a metal [[security thread]] running through the paper. It also banned the import of pound notes for the duration of the war in 1943, stopped producing new £5 notes and warned the public about the danger of counterfeit currency.{{sfn|Nachtstern|Arntzen|2008|p=26}}{{sfn|Security by Design, 2007|p=6}}

===Operation Andreas===
[[File:Alfred Naujocks.jpg|thumb|upright|[[Alfred Naujocks]], who oversaw Operation Andreas]]
On receipt of Hitler's go-ahead, Heydrich opened a counterfeiting unit under the operational title {{lang|de|Unternehmen Andreas}} (Operation Andreas).{{sfn|Pirie|1961|p=3}}{{refn|{{lang|de|Unternehmen Andreas}} is listed in histories as either Operation Andreas or Operation Andrew.{{sfn|Malkin|2008|p=27}} The scheme was also known in Nazi command as Production A.{{sfn|Feller|Hamilton|1985|p=1769}}|group=n}} Heydrich's order to set up the unit stated that

<blockquote>This is not to be a forgery or counterfeiting in the usual sense, but authorised facsimile production. The notes must be such a perfect copy of the original that even the most experienced bank-note experts cannot tell the difference.{{sfn|Tiley|2007|p=52}}</blockquote>

In early 1940 the forgery unit was set up in Berlin within the technical department of the {{lang|de|Sicherheitsdienst}} (SD), headed by [[Alfred Naujocks]], a [[Sturmbannführer|major]] in the paramilitary [[Schutzstaffel]] (SS). Daily operational control fell under the auspices of Naujocks's technical director, Albert Langer, a mathematician and [[cryptography|code-breaker]].{{sfn|Malkin|2008|pp=21–23}}{{sfn|Pirie|1961|pp=5–6}} The pair broke the task down into three stages: producing identical paper, preparing identical [[Offset printing#Plates|printing plates]] to the British notes, and duplicating the British serial numbering system.{{sfn|Pirie|1961|p=3}}

The Germans decided to concentrate on the notes with the largest number in circulation, the £5.{{sfn|Malkin|2008|p=42}} Samples of British notes were sent to technical colleges for analysis, which reported back that it was rag paper with no added [[cellulose]]. Naujocks and Langer realised that the paper would have to be handmade.{{sfn|Pirie|1961|pp=5–6}} The colour of the first samples differed from the original; the Germans had used new rags. After tests at the [[Hahnemühle]] paper factory, the rags were used by local factories and then cleaned before being used to make the paper; the colours of the counterfeit and original notes then matched.{{sfn|''The Great Nazi Cash Swindle'', 2004|loc=Event occurs at 12:30–13:20}} When the initial paper samples were produced, at a factory in Spechthausen, they looked identical to British notes in normal light, but looked dull in [[ultraviolet]] light when compared to the originals. Langer surmised it was because of the chemical composition of the water used for making the paper and in the ink. He duplicated the chemical balance of British water in order to make the colours match.{{sfnm|1a1=Feller|1a2=Hamilton|1y=1985|1p=1768|2a1=Pirie|2y=1961|2pp=5–6|3a1=Kahn|3y=1978|3p=300}}

To break the coded arrangement of the alphanumeric serial designation, Langer worked with banking experts, examining records of currency from the previous 20 years in order to replicate the correct order.{{sfn|Pirie|1961|p=11}} No records were kept by Operation Andreas and how the Germans identified the correct sequences is not known; the paper historian Peter Bower states that it is possible that techniques adapted from those used in [[cryptanalysis]] were used to break the sequences.{{sfn|Bower|2001|p=46}} The German engravers working on the engraving plates struggled to reproduce the vignette of Britannia, which they nicknamed "Bloody Britannia" because it was so difficult. After seven months the forgers finished what they thought was a perfect copy, although Kenworthy states that the figure's eyes are incorrect.{{sfn|Pirie|1961|p=7}}{{sfn|''The Great Nazi Cash Swindle'', 2004|loc=Event occurs at 16:30–16:40}}

By late 1940 Naujocks had been removed from his position after he fell out of favour with Heydrich.{{refn|Sources disagree on the reasons for the falling out. The historian Anthony Pirie relates that Naujocks was running [[Salon Kitty]], a brothel frequented by high-ranking Nazis and foreign dignitaries; he made a practice of recording Heydrich during his visits, until he found out.{{sfn|Pirie|1961|pp=11–13}} Malkin considers the breach between the two came because Heydrich ordered Naujocks to counterfeit a supply of [[Banknotes of the Norwegian krone|Norwegian kroner]] within a week; Naujocks told him it would take a minimum of four months.{{sfn|Malkin|2008|p=30}}|group=n}} The counterfeiting unit continued under Langer before he left in early 1942 at which point it closed down; he later stated that over 18 months, the unit had produced around £3 million in forged notes;{{sfn|Malkin|2008|pp=30–31}} the historian Anthony Pirie puts the figure at £500,000.{{sfn|Pirie|1961|p=13}} Most of the currency produced in Operation Andreas was never used.{{sfn|Bower|2001|pp=46–47}}