British pilot Frank Bennett (Bruce Lester) falls in love with French nurse Helene von Lerbeer (Margaret Lindsay) after his plane is shot down over France during World War I, unaware that shes actually a German spy. Installed with a new identity at the home of Bennetts father (Holmes Herbert), a cabinet minister, Helene becomes entangled in a complicated spy game with undercover German agent Valdar (Boris Karloff) and the head of British Intelligence, Col. Yeats (Leonard Mudie).
British Intelligence is a 1940 spy film set in World War I. It was directed by Terry O. Morse and starred Boris Karloff and Margaret Lindsay. The film, also known as Enemy Agent, was released in the United States in January 1940. The Warner Bros. B picture was based on a 1918 play Three Faces East written by Anthony Paul Kelly and produced on the stage by George M. Cohan. Two film adaptations of Three Faces East in 1926 and 1930 preceded British Intelligence.
During WWI pretty German master spy Helene von Lorbeer is sent undercover to London to live with the family of a high-placed British official where she is to rendezvous with the butler Valdar, also a spy, and help him transmit secret war plans back to Germany.
During World War I, Franz Strendler, a master German spy has cost the British dearly. In desperation, they send for their best agent, currently undercover in Germany. Pilot Frank Bennett (Bruce Lester) is sent to pick him up, but the Germans are forewarned and Bennett is shot down. Luckily, he survives and is rescued by friendly soldiers. While recovering in a hospital, Bennett is tended by a pretty nurse, Helene Von Lorbeer (Margaret Lindsay). He tells her he loves her, but she informs him she is leaving, and they will not see each other again. However, after Bennett falls asleep, she kisses him on the cheek.
Von Lorbeer turns out to be a spy herself. She is recalled to Germany to receive a high honor sent personally by the Kaiser and to undertake a new mission. Posing as a refugee named Frances Hautry, she infiltrates the London household of Arthur Bennett (Holmes Herbert), a cabinet minister, and, coincidentally, Franks father. She takes her orders from Valdar (Boris Karloff), the butler. However, unbeknownst to her, he is a British double agent. Valdar later secretly reports to Colonel Yeats (Leonard Mudie), the head of British Intelligence.
When Bennetts secretary, also a German spy, taps out a secret message in code on her typewriter, Yeats is present and recognizes it. Since only Hautry is also in the office at the time, he sets a trap for her. A captured spy named Kurz seemingly escapes from the British and flees to Hautrys bedroom. She hides him in her closet, but then betrays him when Yeats and his men show up. Afterwards, she tells Valdar that she knew "Kurz" was an imposter.
Frank Bennett unexpectedly shows up, his squadron and others having been recalled to London for some reason. He is surprised to find his former nurse there and under a different name. Hautry is forced to reveal that she is loyal to the British. However, Valdar overhears their conversation.
That night, the British cabinet meets in Bennetts home. It is the moment Valdar has been waiting for. He forces Hautry at gunpoint down in the cellar, where he has set a bomb to blow the house up under cover of a Zeppelin bombing raid. Hautry tells Valdar that she had no choice but to make up a story to allay Franks suspicions. Convinced when she shows him the award she was given, Valdar finally reveals that he is Strendler.
Fortunately, Valdar has been under surveillance. Yeats and his men rush to the cellar door. When Valdar escapes through the coal shute, Hautry unlocks the door and informs Yeats about the bomb. Valdar rushes to his hideout to transmit the stolen British plans for the spring offensive, pursued by the British, but, ironically, a Zeppelin bombs the location and kills him and his confederates before he can send his information.
Boris Karloff as Valdar, aka Franz Strendler
Margaret Lindsay as Helene Von Lorbeer, aka Frances Hautry
Bruce Lester as Frank Bennett
Leonard Mudie as Colonel James Yeats
Holmes Herbert as Arthur Bennett
Austin Fairman as George Bennett
Warner Bros. began principal photography on British Intelligence in mid-March 1939. Morses remake of Three Faces East "... is clearly one of those cheap and fast quickies the studios - in this instance, Warner - ground out at the onset of war, as the sheerest propaganda."
British Intelligence was typical of prewar American propaganda films, similar to other Warner Bros. productions. Later reviewers saw it as a clumsy attempt to portray German aggression in Europe at the start of World War II. "As a balm to 1940 audiences, the film includes an early comedy scene in which German military protocol is upset by a clumsy corporal (Willy Kaufman) who bears a startling resemblance to a certain Nazi dictator."