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In November 1989, days before the collapse of the [[Berlin Wall]], [[Secret Intelligence Service|MI6]] agent James Gascoigne is shot and killed by [[KGB]] agent Yuri Bakhtin, who steals The List, a microfilm document concealed in Gascoigne's wristwatch containing the names of every intelligence agent (on both sides) active in [[Berlin]].

A day later, Lorraine Broughton, a top-level MI6 spy, is dispatched to recover The List and is told to keep an eye out for Satchel, aan infamous double agent for the KGB who has been a problem for MI6 for years. Arriving in Berlin, she is ambushed by KGB agents speaking English and apparently posing as her own MI6 team, who attempt to deliver a message from their boss, Aleksander Bremovych. She manages to escape by crashing their car and is immediately picked up by her real contact, maverick MI6 station head David Percival. Percival is addicted to the Bohemian lifestyle he has been leading on both sides of the wall. Resentful of Lorraine and the implied supervision from London she brings, he seems unwilling to cooperate with her. Lorraine searches Gascoigne's apartment and discovers a picture of him and Percival. Percival had previously denied knowing Gascoigne, so she suspects Percival was behind the [[Berlin Police|West Berlin police]] ambushing her while she searched Gascoigne's apartment. When Lorraine visits a restaurant mentioned by the KGB agents she encounters Bremovych, but is "saved" by Delphine Lasalle, a novice French agent. Although Lorraine is initially suspicious of Lasalle, they eventually enter into a sexual relationship after a kiss in a nightclub, where. Lasalle tells Lorraine that she knows who she is and why she is in Berlin, and suggests that they should work together.

Percival, having tailed Lorraine, surveils a watchmaker she visited. He spots Bakhtin entering the same shop. Bakhtin tells the watchmaker he has a watch full of secrets he will sell to the highest bidder. [[Central Intelligence Agency|CIA]] agent Emmett Kurzfeld meets with Lorraine in Berlin, handing her a newspaper containing a number which, when called, informs her Satchel has been compromised. Percival lures Bakhtin to an alley, kills him, and takes the wristwatch from which he discovers who Satchel is. Ignoring that Percival has The List, Lorraine learns that the [[Stasi]] officer codenamed Spyglass, who gave The List to Gascoigne, also memorized the names on it. She and Percival make plans to escort him across the border to West Berlin. Percival meets with Bremovych, who suspects Percival has The List, but Percival offers only the second best thing—the identity and operations details of Satchel "to keep the balance", also tipping him off about the plan to extricate Spyglass. Lasalle covertly photographs the meeting.