I picked this up on eBay as I was hoping there was some kind of association with the OSS or maybe their Psychological Warfare Branch. So far this doesn't appear to be the case as this is what I found regarding the function of SHAEF's G-2 (intelligence) staff:
SHAEF G-2 did not collect intelligence by interrogating prisoners or sending out ground or air reconnaissance patrols. They depended on the armies or their subordinate units to supply them with this information.
SHAEF G-2 would receive estimates and information from the armies and the army groups, from Resistance groups, either directly or indirectly, from reports of the Office of Strategic Services and the Political Warfare Executive, from the estimates of the War and Navy Departments in Washington, and from the Joint Intelligence Committee in London. This information upon collection was assessed and passed onto subordinate headquarters in weekly intelligence summaries and periodic estimates.
One of the unanswered things about this patch is the wording of BERLIN with INTELLIGENCE. SHAEF came into being on February 13, 1944 in London. SHAEF moved to Versailles, France, in August of 1944. They moved a third time to Frankfurt, Germany, in May of 1945. They were discontinued on July 14, 1945. Frankfurt is pretty far from Berlin. As previously stated SHAEF did not go out and about searching for intelligence but intelligence was sent to them from various sources which they collated, assessed and then forwarded. Since they were nowhere near Berlin and were not an on the ground intelligence gathering outfit why the wording Berlin? Based on the way they gathered intelligence why would there have been a need for a satellite office in Berlin? The patch itself looks German post war occupation period manufacture. However SHAEF ceased to exist on July 14, 1945. Maybe this was a right arm patch for a former SHAEF G-2 staffer who stayed overseas and joined USAEUR (US Army Europe) in occupied Germany. But that would not explain the town of Berlin being part of the tab. Any ideas or has anyone come across this patch before?