A dispute over a pre-World War I debt involving a German national sparked debate before the First Division of the Anglo-German Mixed Arbitral Tribunal in London regarding the debtor’s nationality status and alleged espionage activities. The case centers on Dr. Charles Herman Liebbrand, a German debtor, who challenged the Tribunal’s jurisdiction on the grounds that he lost his German citizenship under the 1870 German Nationality Law due to an uninterrupted absence from Germany for ten years prior to 1914.

Liebbrand’s defense argued that he was no longer a German national at the time the debt claim arose because he had not resided in Germany continuously, as required by the nationality statute. However, the creditor contested this position, asserting both that Liebbrand had traveled to Germany multiple times during the purported ten-year absence and that his involvement as a German government agent prevented the loss of nationality.

Representing the creditor, Mr. Percy Cohen presented evidence indicating that between 1896 and 1914, Liebbrand frequently visited Germany, often under conditions of secrecy associated with intelligence duties. According to the creditor’s account, Liebbrand was active as a spy, conducting operations in several key locations. For instance, he was allegedly in Kiel in 1906 and maintained communications with German officials in 1911, including receiving a telegram from Berlin with the cryptic message: "The squirrel is about to jump," shortly before the Agadir incident.

Further claims detailed Liebbrand’s espionage activities at Felixstowe, a coastal town in England. In 1912, he rented a house there and reportedly engaged in covert surveillance of British naval movements. Specific allegations included taking two men out at night to gather intelligence while intoxicated, observing naval activity from a beach hut, conducting soundings to locate secret channels, maintaining a tent equipped with powerful lights on nearby cliffs, and regularly interacting with naval officers and sailors in social settings, often appearing flush with cash.

In 1913, Liebbrand was publicly named as a German spy, and upon the outbreak of war in 1914, he allegedly destroyed his documents and concealed sensitive materials in his garden. British intelligence reportedly monitored his activities until he was repatriated to Germany in 1919.

The Tribunal has reserved its ruling on whether Liebbrand’s loss of nationality and the allegations of espionage affect its jurisdiction in the debt dispute. The outcome will clarify legal interpretations concerning nationality status under conditions of espionage and absence during the tumultuous pre-war period.