In any further communication on this subject, please quote

No. F 1504/173/10

and address-

not to any person by name

but to-

The Under-Secretary of State,"

Foreign Office,

London, S.W.1.

RECEIVED

8 MAR 1940

147

FOREIGN Office.

I Duew

C. O. REG!

CONFIDENTIAL

S.W.1.

6th March, 1940.

Sir,

I am directed by Viscount Halifax to enclose a copy

of telegram No.332, of the 21st February, from His Majesty's

Ambassador at Tokyo on the subject of the possible release

which were

of the British ships "Sagres" and "Lalita"

captured and detained by the Japanese on the ground that they

were plying for the benefit and under the directions of the

Chinese Government.

2.

The S.S. "Sagres", which is owned by the British

firm Messrs. Williamson of Hong Kong, was captured by the

Japanese on April 8th, 1939, and at that time was under charter

to another British firm, the Douglas Shipping Company.

Repeated protests to the Japanese authorities have been made

by His Majesty's Ambassador at Tokyo and by the British naval

authorities, but the ship has not yet been released.

3. The owners of the "Sagres" are claiming Hong Kong

$1,000 a day in respect of demurrage alone and have reserved

the right to claim compensation for any damage which may

have been done to the ship herself, her stores or her equipment.

4. The S.S. "Lalita" belongs to an Indian firm, the

Dholera Steamship Company of Bombay. This ship was chartered

to the Fukien Transportation Company of Foochow and she was

captured on April 11th, 1939. She is still detained by the

Japanese authorities in spite of repeated protests from

Sir Robert Craigie and the British naval authorities. Lord

Halifax has no details of any claim for compensation in respect

of the "Lalita" nor any record of such a claim having been made.

5.

The Under-Secretary of State,

Colonial Office.

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