§ MAJOR ANSTRUTHER-GRAY
I beg to ask the Secretary of State for Foreign Affairs whether any reply has been received from the Russian Government regarding compensation for the loss of the s.s. "Knight Commander"; and whether similar German claims have been settled.
§ SIR EDWARD GREY
The Russian Government have not yet replied to the proposal of His Majesty's Government that the case of the "Knight Commander" should be submitted to arbitration. The circumstances of the case of the "Knight Commander" cannot be said to be similar to that of the German vessels. In the case of the British vessel the Supreme Admiralty Council at St. Petersburg held the vessel and most of her cargo to be good prize. In the German cases the confiscation was not upheld by the Court and consequently compensation was awarded in respect of both ships and cargo.