CO129-585-2 Sino-Japanese conflict- release of captured British ships 6-3-1940 - 2-10-1940 — Page 19

AMENDED COPY.

WILLIAMSON & CO.

Ship-Owners & Agents, Coal & General Merchants.

19

The Honourable Colonial Secretary,

H O N G K 0 N G.

HONG

KONG.

P. & O. BUILDING,

HONG KONG 30th May, 1940.

Sir,

S.S. 'SAGRES ' YOUR REF. 141/1680/310.

We have the honour to acknowledge receipt of your letter

of 20th May, 1940, advising that the Japanese Consul-General,

Hong Kong has given you to understand that the release of our

s.s.'SAGRES' in good running order can be effected at an early

date provided we waive our claims for demurrage and other charges.

Our views are as follows:-

1.

Assuming the information received from the Japanese Consul-

General is an official offer and not just to ascertain what our

reaction is to the proposal, we consider official confirmation in writing should first be obtained from the Japanese Consul-

General.

2.

(a)

Apparently we have two alternatives -

To accept release on the terms of the Japanese offer. (b) Hold out for compensation, in whichcase the vessel will apparently be detained in Formosa indefinitely to deteriorate and

eventually be only serviceable as scrap, if, and when she is

redelivered to us.

3. Viewed from our interests only, and purely from a business standpoint it may be prudent for us to now cut our losses and accept release on the Japanese terms, but other principles are involved, such as the effect our acceptance of the Japanese terms

may have on other outstanding claims for damage to British

property, to say nothing of loss of prestige.

Furthermore, the Japanese Navy who are fully responsible for this incident will be relieved of their liability without

having even expressed an apology.

We therefore submit, that the acceptance or otherwise of

the Japanese terms should not be viewed entirely from our busine