I like how Smith's friend says that intelligence and research can look very similar. I suspect that he is actually using Mr Smith, and probably a network of other such wanderers, in order to do exactly that: gather intelligence. They don't say what he does for a living, but he is stationed in Ankara, and appears to have substantial means. He also has trusted agents whom he can send out to travel hundreds of miles in order to deliver a message, etc. As I recall, he also had letters delivered to Smith by way of a female Western traveler .
One could easily imagine him at his station cultivating relationships with these different people, native and European. He would be the one that everyone would go to in order to get travel papers or letters of introduction or just smooth things over. Just as Smith and Ali found themselves hosted by a wealthy man and his wife, given considerable hospitality during that time, then others would perhaps also find themselves with their travels facilitated by a letter or word sent ahead to another city. Adventurers, hunters for exotic game, scholars and archaeologists, trade representatives looking for connections to villages that make traditional rugs and tapestries, all of these would be referred to that man in Ankara. He would send them out with not much more than a sense of gratitude and obligation and some small errand. "Please pass this letter on to so and so when you get to such and such city." "If you happen to be in that region in the summer, I would appreciate knowing how the opium harvest has gone."
All of these little facts would be streaming back to him in letters from otherwise innocent travelers who just pick up a word here and there. And then he would pull it together into a report that he would pass on to Her Majesty's foreign intelligence service.
I am sure he is genuinely Henry Smith's friend, but he is also taking advantage of his school chum's predilection for bumbling around foreign lands to pick up more data then any Cloak and Dagger worker could obtain.