CO129-585-2 Sino-Japanese conflict- release of captured British ships 6-3-1940 - 2-10-1940 — Page 23

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Reference is invited to the Aide Memoire No. 54 which was left at the Ministry on the 8th March last, regarding the detention of the British ships "Lalita" and "Sagres" and to the conversation between Mr. Tani and Sir R. Craigie.

The owners of the s.s. "Lalita" would be prepared to waive all claim for compensation in respect of this vessel provided that the "Dholera", which also belongs to them, is released at the same time and that both steamers are delivered in Singapore before April 30th in the same condition in which they were at the time of capture, to the Chairman of the New Dholera Steamship Company, Limited, or his duly constituted agent in writing.

The owners of the s.s. "Sagres" state that the verifiable losses suffered by them owing to lengthy detention amount to £21,000, but that in order to obtain an early settlement, they would accept, without prejudice to legal rights, £10,000, provided delivery in Hong Kong harbour is effected within one month, free of all charges, and that the hull, boilers, machinery and equipment are in good order, the latter to be subject to inspection in dock in Hong Kong by independent British and Japanese surveyors, and any damages to be made good by the Japanese Government.