I

HONG KONG, 25TH OCTOBER, 1937.

SIR,

1. By Proclamation No. 9 made under the Commissioners Powers Ordinance, 1886, dated the 7th day of October, 1937, and published in the Government Gazette of 8th October, we were appointed by Your Excellency's command "to enquire into and to establish the facts in relation to the alleged sinking of certain fishing junks, the survivors of which were brought into Hong Kong on board the s.s. "Scharnhorst " and s.s. Kaying."

2. On 14th October notice was given, pursuant to section 3 (3) of the Commis- sioners Powers Ordinance, 1886, that the examination of witnesses would be conducted by us in public at the Supreme Court on Monday, 18th October, at 10 a.m. This notice was published in the Government Gazette of 15th October and in the South China Morning Post of 15th October, the China Mail of 15th October, the Sunday Herald of 17th October, and the Tsun Wan Yat Po, the Wah Tsz Po, the Tai Kwong Po, the Kung Sheung Yat Po, the Wah Kiu Yat Po, the Chiu Po, the Nam Keung Yat Po, the Tung Fong Po all of the 15th October.

3. Mr. John Whyatt, Barrister-at-law, Assistant Attorney General, presented the witnesses to us and conducted the examination of each of them. No interested parties were represented, but the Consul of Portugal in Hong Kong attended and watched the proceedings on behalf of the Government of Macao.

4. A shorthand note was taken of all the evidence given by the witnesses, and a transcript thereof accompanies this report.

5. Admiralty Chart No. 1962 Hong Kong to the Brothers, covers all the area with which we are concerned, San Mei is approximately N.W. by W. of the Lighthouse and point to which we have throughout this report referred as Chelong. On the chart they are transliterated as Tai Sami and Chilang respectively, following the Hoklo pronunciation.

"L

6. On 27th September at 3.40 a.m. the German ship Scharnhorst ", while on a voyage from Kobe to Hong Kong sighted what appeared to be a shipwrecked crew on

a small raft. The master's report is in the following terms:-

Norddeutscher Lloyd, Bremen.

D. Scharnhorst Reise 9.

Hong Kong, den 27th September, 1937-

Report over shipwrecked crew,

On our way from Kobe to Hong Kong, we saw in the morning 3.40 the 27th September a shipwrecked crew, about true 205 7 miles distance from Pedro Blanco Rock,

At 3.50

We lowered our boat

At the same time we turned the ship and was searching for the float. a.m. we found the shipwrecked crew sitting on a small raft. and picked up 9 Chinese males and 1 female.

S.S.

(Signed) W. STEIN,

Captain,

'Scharnhorst." Bremen.

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