CO129-585-2 Sino-Japanese conflict- release of captured British ships 6-3-1940 - 2-10-1940 — Page 20

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interests, and His Britannic Majesty's Ambassador at Tokyo, the Commander-in-Chief, China Station, and His Excellency the Governor of Hong Kong should first approve of our accepting their terms, if they also agree that under present International conditions this would be a prudent procedure.

4. Acceptance of release without compensation should not imply that the question cannot be left on an indefinite basis to be settled in the future when, as we trust, all such claims will be eventually wound up between the British and Japanese Governments. 5. On the basis that we agree to accept the Japanese terms with the approval of His Britannic Majesty's Ambassador, Tokyo, the Commander-in-Chief, China Station, and His Excellency the Governor of Hong Kong, the following conditions should be stipulated - (a) Vessels to be delivered in Hong Kong Harbour in good running order and in a sea worthy condition as regards Hull, Engines, Boilers and Equipment with all equipment that was on board at time of seizure, any gear missing to be either replaced or paid for by the Japanese Government within three months of delivery.

(b) Vessel to be placed in Drydock on arrival at Hong Kong for survey by the British Corporation Surveyors with whom the vessel is classed, and any bottom or other damage sustained by the vessel during detention to be made good or paid for by the Japanese Government. If desired the Japanese Government may also appoint a Surveyor to protect their interests.

(c) Vessel to be delivered at Hong Kong within a reasonable time, say three weeks after official acceptance of the Japanese offer. (a) Our agreeing to accept release of the s.s. 'SAGRES', and meantime waive any claims for compensation does not imply that we in any way recognise her seizure as being justified or legal.

We have the honour to be,

Sir,

Your obedient servants

(SGD) W. RAMSAY.

For WILLIAMSON & CO.

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