Yes I have. Good book.
IKWYM, but I've read a few that have raised a smile.
The compiler was from RSRE (RRE had become the Royal *Signals* and Radar Establishment since Algol68R, hence 68RS) but I think ICL had a hand in the port. Oxford University Computing Service may have been involved in that, as well, and certainly were in the VAX port.
Yes, the diagnostics were brilliant.
Algol68RS implemented a modular compilation system. You could write a module that was DECS instead of PROGRAM. The DECS module ended with a KEEP statement, and the compiled module could be USEd in another module/program (all fairly obvious stuff). The compiler worked out when a module that was a dependency of your program needed to be recompiled and handled the build automatically. Seems pretty basic stuff today, but was amazing at the time.
I can't remember the exact syntax, but you'd write something like:
PROGRAM my prog USES foo, blah;
and foo and blah were compiled (if necessary) linked in automatically.
Thanks.