SS TILAWA 1942 | The Forgotten Tragedy | Nov 23 1942
SS TILAWA 1942 | The Forgotten Tragedy | Nov 23 1942
Emile Solanki, founder of tilawa1942.com is the first person connected to the “Indian Titanic” forgotten tragedy to touch the original S.S. Tilawa silver from 1942
Photograph of Emile holding a S.S. Tilawa original silver faceplate, along with a certificate of authenticity issued by Deep Ocean Search. Credit. tilawa1942.com
On Wednesday 16th October 2024, about 11:50 am EST, for the first time in human-history, a descendant of the forgotten tragedy, made physical contact with a maritime artifact of silver that was salvaged in 2017 from the wreck-site of the ill-fated S.S. Tilawa, located about 930 miles northeast of the Seychelle in the Indian Ocean. 1 of only 200 faceplates, each with a current market-value of $9,995.00 USD, weighing 100+ ounces, was laser cut from an original S.S. Tilawa Silver Bar. The full original bars are valued over $80,000.00 USD. The faceplates include the bar number, specification data. weight, purity, and a crest of the bar’s manufacturer, The Bombay Mint. Each faceplate includes a Certificate of Authenticity issued by Deep Ocean Search.
Emile says: “This is a dream come true! I have deeply longed for this day since we first read in 2020 of Tilawa’s discovery back in 2014. It would cost millions of dollars for anyone to visit the wreck-site. I cannot believe I am physically touching a piece of Second World Indian history. This precious artifact was sitting at the bottom of the Indian Ocean for some 75 years. This is the closest I will ever get to the ship and area where my beloved great-grandfather suffered a traumatic death. This moment is very sentimental. For me, after meeting 4 survivors, this is the first tangible evidence from the wreck-site that I can hold on to with my father and my son. This is a milestone towards closure, even though there is plenty more work to be done. What I am holding is NOT a piece of any precious metal valued at a random commodity spot price. This faceplate is a priceless maritime artifact! It represents a deep and tragic maritime tragedy. It is fitting that tilawa1942.com would be the first to have this privileged moment. It is a memory I shall cherish, and always be deeply grateful for. This artifact is now part of our family heritage, and something to pass down to the next generation. At this time I not only think of those who perished, but also those affected at the time, who experienced great loss and trauma. For example, my late grandfather, Mr. Ranchhodbhai Nichhabhai Solanki, who lost his father at age 9, the late Mr. Nichhabhai Chibabhai Solanki. How proud my grandfather would be of this day! He implored me back on July 22nd 2012 to find the Tilawa ship. His burning desire and request has been fulfilled! My eyes are flooded with high emotion. Our family raised all the funds we could, to ensure Tilawa1942.com could at least have one original artifact salvaged from the Tilawa wreck-site, as well as obtaining the 10-item commemorative series from the smelted Tilawa bars.”
Tilawa1942 is grateful to GovMint, who assisted them in obtaining an original S.S. Tilawa silver faceplate, and to LPM who provided the 10-item commemorative series from the smelted silver.
Photograph Emile and his son, Luca, holding a S.S. Tilawa original silver faceplate, along with a certificate of authenticity issued by Deep Ocean Search. Credit. tilawa1942.com
The S.S. Tilawa, named after a Burmese port, was built by the British Steam Navigation Company, and in use for 18 years. It was a passenger cargo-liner. On its final voyage, it departed from the Ballard Pier, Bombay, India on 20th November 1942, destined for Mombasa, Maputo, and Durban. 958 people, mostly Indian nationals, were onboard taking the risk of dangerous travel on the Indian Ocean during the Second World War. Of these 958 people, 732 were passengers, 222 crew, and 4 gunners. 2 days later, about 930 miles northeast of the Seychelles, Tilawa was twice torpedoed by the Japanese Imperial Navy. Sadly 280 people died. After struggling to stay alive for 2 days, 678 were rescued thanks to HMS Birmingham and S.S. Carthage. These survivors were brought back to Bombay on 27th November 1942.
The ship also carried 6,472 tons of cargo, including over 80 tons of 99.9% fine silver bullion (it seems mostly in the form of silver bars) intended to mint South African and Egyptian coins. The actual count was 2,391 silver bars, each weighing approximately 1,118.6 ounces (69.91 lbs), valued at $378,000 USD in 1942, and valued at $43 million in 2020.
To read a very detailed explanation of the silver transaction between The Government of India and The Union of South, please see the Document: UK High Court Judgment 16/12/2020 THE SILVER (Click Here)
Photograph of the S.S. Tilawa Ship. Credit. Courtesy of Photoship, TyneBuiltShips.co.uk
Maritime archeology is rare enough, especially that of treasure from a sunken ship, sitting at the bottom of the ocean for decades. It is estimated to cost daily $100,000 USD, to maintain salvage operations. Very quickly millions of dollars can be wasted in the pursuit of precious items hidden deep and far away in waters difficult to navigate. Even if you locate a wreck, there is no certainty you can easily access it, let alone find the item you are seeking. If you then find what you're looking for, there is still the delicate robotic challenge of carefully salvaging the item without losing it to the dark ocean permanently. Once an item is in possession, it becomes a matter beyond usual commodity investment, but a piece of missing history with a meaningful story. This was indeed the case for the 80 tons of silver bullion (2,391 silver bars) carried onboard the ill-fated S.S. Tilawa.
The complex and costly salvage operation of the Tilawa silver was initiated and financed by Argentum Exploration Ltd. They hired Deep Ocean Search to perform the various works, from locating and surveying Tilawa over 4,000 meters deep, visiting the wreck, and using subsea vessels and robotics carefully navigating through the ship to then salvage 2,364 silver bars weighing 60 tons! Indeed the unaccounted 27 bars were either not found, or declared. We will never know the truth behind this. However, it is never expected to achieve a 100% salvage.
Photograph showing Deep Ocean Search carrying out the salvage operation.
Credit. Argentum Exploration Ltd.
Upon declaring this silver to the receiver of the wreck in Southampton, UK, a complex legal battle commenced between The Republic of South Africa (RSA) and Argentum Exploration Ltd. Starting with the UK High Court in 2020, RSA lost their claim of “state immunity.” Essentially, whilst establishing that RSA was the owner of the silver, having purchased it from The Government of Indian for the purpose of coinage in 1942, they would have to pay a salvage fee to Argentum for services rendered. RSA then appealed to the UK Court of Appeals, and lost again. Argentum for a second time successfully argued that the silver was being carried on a commercial vessel, and intended for commercial use.
RSA then appealed to the UK Supreme Court. A long 2 day debate took place between RSA and Argentum scrutinizing the various components of articles and conventions related to salvage law, as well as the ramifications of salvage claims made “in-personam” vs. “in-rem.” Meaning, salvage declarations made when you have an agreement with the owner of the item you salvaged (“in-personam”), vs. when you do not have an agreement with the owner (“in-rem.”). Argentum did not have a prior arrangement with RSA. Hence, their declaration was “in-rem.” They sought the United Kingdom as the appropriate and legally friendly place to protect their salvor rights. Truly in a dramatic turn of events, RSA convinced the UK Supreme Court to overturn the previous 2 decisions. The justices established a historic new and unprecedented maritime judgment. It is a conclusion that now affects future “in-rem” salvage pursuits of items owned by a government. The UK Supreme Court made clear that RSA may claim state immunity, that they do not need to pay a salvage fee to Argentum, because the silver of 1942 was a sovereign transaction intended for a sovereign purpose. The method of the delivery (S.S. Tilawa), and the type of delivery (merchant/commercial ship) had no bearing on the item of a sovereign transaction.
An excerpt from the judgment reads: “The Silver was a non-commercial cargo owned by a state and entitled, at the time of salvage operations, to sovereign immunity under generally recognised principles of international law.” However, to Argentums benefit, hoping to recover millions of invested dollars from this salvage operation, on 26th April 2024, both parties agreed to a settlement. RSA may have also felt the need to settle, after previously losing twice on British soil. This was a few weeks prior to the UK Supreme Court ruling on 8th May 2024.
Following the settlement, for an undisclosed sum, Argentum released all 2,364 silver bars to an unknown smelter. Apparently the agreement stipulated only 2 silver bars were to be given to the Republic of South Africa. The rest were to be smelted. Forever there would be no further trace of the original bars. “Maritime archeology was essentially destroyed for all time. This was devastating news to Tilawa1942” says Emile.
Yet, in a shocking surprise, a US based bullion distributor told Tilawa1942 that at least 75 original Tilawa bars, and 200 lasered faceplates also original, were reserved for commercial sale. In addition to this, several other bullion distributors primarily in the US are now selling commemorative bars and rounds made from the smelted Tilawa silver. This recent development means the smelter violated the confidential settlement agreement, resulting in Argentum issuing an official complaint against them. There also seems to be tension between Argentum and the company they hired to manage the Tilawa salvage operation, Deep Ocean Search. The issue could be the ownership of intellectual property such as the specific wreck coordinates, survey, research material, photographs, video footage, etc. Interestingly, many are curious why Deep Ocean Search would certify bars and faceplates for commercial sale if all but 2 bars were to be smelted.
Tilawa1942 have found it fascinating uncovering the layers of the salvage industry. “There are so many moving parts to this operation!” News articles of interest include:
Photograph of the UK Supreme Court delivering the judgment handown on May 8th 2024, of the S.S. Tilawa silver court case. Credit. Supremecourt.UK
Each full-size Tilawa bar struck in around 1130 ounces of highly pure 99.9% fine silver. That’s roughly 70 pounds of high-grade silver bullion preserved, certified by Deep Ocean Search.
These were sold to various bullion and specialist collection sale companies for distribution. Additionally, it has been said that out of the approximate 2,164,437 ounces (60 tons of silver), a certain amount of silver was retained for commercial commemorative endeavors.
A US based precious metals distributor, JM Bullion, states: “Tilawa Shipwreck Silver is now enjoying a second life. While the final destination of all the silver from aboard the Tilawa is unknown, some 800,000 ounces of Tilawa silver has been refined into new silver bars and rounds for modern investors and collectors to own. These products offer a blend of tragic history and modern bullion in a single item.” Tilawa1942 has since learned that SilverTowne Mint is the company hired by an unknown company to use the smelted Tilawa silver for the collectible series. These mementos are now openly advertised and sold by distributors in the United States and in Hong Kong.
Regardless of the legal conflicts between the smelter and Argentum, or the previous court battle with RSA, the efforts of discovering and visiting the Tilawa wreck-site, salvaging its silver artifacts, and now the production of commemorative items, is all welcomed by Tilawa1942: “We have no interest in the legal battle of silver. We understand there are huge costs associated with salvage operations, which must be recouped. There is also the cost of production for these commemorative collections. We could only dream of having the resources to undertake the work completed by Argentum. We can gain some closure, raise further awareness of the forgotten tragedy, and preserve Tilawas memory even more because of the salvage operation.”
In October 2022, Emile began to describe the Tilawa incident as “The Indian Titanic.” (Click Here) Emile says: “I am pleased that the press, those associated with the salvage operation, and those selling Tilawa silver, have all embraced this title. The Titanic continues to receive so much attention, but there are other tragedies like Tilawa, and that of the Indian people that deserves to be prominently featured in the history books.”
Tilawa1942 has reached out to Argentum Exploration Ltd. and Deep Ocean Search requesting help and collaboration with various initiatives. “We have implored these 2 companies to kindly release the specific wreck-site coordinates, research material, survey, photos, and videos, etc., so that we can raise further awareness and ensure we have maximized every resource. Our motive is sincere, and we deeply appreciate this incredible and available content,” says Emile. Tilawa1942 are still waiting for an official response.
Source of salvage operations
Source of commercial sales of Tilawa silver
Source of legal explanation of Tilawa salvage case
Image showing one of the original S.S. Tilawa silver bars.
Credit. LPM Group Limited
BREAKING NEWS!
SPECIAL THANKS AND FULL CREDIT TO ARGENTUM EXPLORATION LTD.
On September 18th 2024, we enjoyed our first online look at photographs showing one of the salvaged 2,364 silver bars (60 tonnes of silver bullion) of the ill-fated S.S. Tilawa. In 2017 Argentum Exploration Ltd. arranged a visit of the S.S. TILAWA wreck site. In 1942, the Bombay Mint sold the 2,391 silver bars to the Union of South Africa for the purpose of coinage.
According to some websites, you can now secure a full-size bar struck in 1128.8 ounces of highly pure 99.9% fine silver. That is more than 70 pounds (70.55 pounds) of high-grade silver bullion!
This is the first time we are viewing the wreck site, and objects from the area of the forgotten tragedy. Yes, the area where we lost 280 of our loved ones. We hope one day to see these artifacts in-person.
In 2014, Argentum hired DEEP OCEAN SEARCH LIMITED (DOS) to find the Tilawa wreck site. The survey vessel used was JOHN LETHBRIDGE. In 2017, DOS managed the silver bar salvage operation, financed by Argentum. Eventually 2,364 (of the 2,391) silver bars were discovered in one of the opium rooms.
The wreck site was about 800 miles from land. It was expected that the seafloor of the wreck site would be difficult to find and navigate around. DOS say "it was chaotic, with large rocky outcrops interspersed with abyssal plain." The depth of water 4,000 meters +.
Thanks to MAKiX, the intact wreck of approximately the correct dimensions was found. This was impressive since it was within 3 days from the search start.
At a depth of 4,500m, the Comanche ROV quickly located the sonar target. Tilawa was found to be lying port side, unusually, at an approximate angle of 45 degrees. This is due to the rocky ledge the ship landed on. The first seen images corresponded to photographs and drawings. The final confirmation would be to discover the ships name on the bow!
Argentum financed the salvage operation in 2017, which included the usage of the vessel Seabed Worker.
Tilawa had at least two locations of immediate interest, and relatively accessible as potential storage areas. They were the mail room, and the specie room. However, both were empty.
Operations like this incur great daily expense. To keep vessels like Seabed Worker at sea can cost around $100K USD per-day. This is due to the additional costs such as marine and technical crews, fuel, etc. This can place financial pressure on salvage work, when the item in question is not easily found.
Tilawa was a very large ship, with many rooms. It was decided to open-up an area deep within the ship. This time it was the Opium Rooms.
The team commenced the tedious task of cutting through hull plates inclined at 45 degrees. They had to systematically cut through various decks to get to this specific small area in the center of the ship.
Unfortunately the first room was empty. When entering the second room, at first all that could be seen was a jumble of jute sacks. After some digging, metallic objects were in-sight. These were lying at the bottom, pressing against the lower bulkhead of the room. Upon a closer look it was clear this was a cascade of silver bars!
ROVs could now recover the silver bar by bar. All 2,364.
#tilawa1942 #sstilawa #tilawa #tilawa1942 #ww2 #silverbars #silverbullion #ArgentumExploration #silversalvage #wrecksitesalvage #deepoceansearch #dos #johnkingsford #lpm
SPECIAL THANKS AND FULL CREDIT TO ARGENTUM EXPLORATION LTD.
When does state immunity apply to maritime salvage?
Facts
In 1942, a ship was sunk in the Indian Ocean by enemy torpedoes (“the Ship”).
It had about 2,500 bars of silver. They belonged to what was then the Union of South Africa. The intention was that they would be made into coin by the South African mint (“the Silver”).
In 2017, the Silver was recovered to the UK because Argentum Exploration Ltd (“Argentum”) understood that it was owned by the UK Government.
Argentum claimed to be the salvor. In 2019, it brought an action “in rem” for a declaration that it owned the Silver, or the salvage. In 2020, it brought an action “in personam” against the Government claiming salvage.
On second appeal, although it continued to claim the salvage, Argentum accepted that what is now the Republic of South Africa (“the Government”) owns the Silver.
Issue
The Government challenged the jurisdiction of the court on the basis of immunity.
A state is not immune in respect of ‘an action in rem against a cargo belonging to that State if both the cargo and the ship carrying it were, at the time when the cause of action arose, in use or intended for use for commercial purposes.’
There were two agreed facts. First, “use” meant the use and intended use of the Ship, and the Silver, at the time. Secondly, the Ship was “in use” for commercial purposes, and there was no subsequent change of use, or intended use.
The issue was whether the Silver was “in use or intended for use for commercial purposes”.
First instance & first appeal
Sir Nigel Teare and the majority of the Court of Appeal held that the Silver was “in use” for commercial purposes. This was because it was being carried, pursuant to a commercial contract of carriage, having been purchased by the Government under a commercial contract for sale. Accordingly, the Government did not have state immunity.
The dissenting judgment on first appeal reasoned that, as a matter of ordinary language, the Silver was not “in use” by the Government for any (commercial or other) purpose. It was simply being carried. In fact, it was “intended for use” for a non-commercial purpose, in particular, to be minted into coinage. Accordingly, the Government had state immunity.
State immunity
In international law, state immunity is primarily a matter of customary international law.
Treaty law on state immunity, however, includes: the 1926 International Convention for the Unification of Certain Rules concerning the Immunity of State-owned Ships; the 1972 European Convention on State Immunity; and the 2004 United Nations Convention on Jurisdictional Immunities of States and their Property.
At common law, to determine whether state immunity applies, a court identifies whether it is an act of a private law character, such as a private citizen might have entered into, or a sovereign, public act.
Maritime lien, actions “in rem” and actions “in personam”
Salvage gives rise to a maritime lien.
This arises by operation of law, at the time of the event creating it. From that point, it is enforceable against purchasers of the property, whether or not they have notice of it. Furthermore, it takes priority over all other claims, whether or not they arose before the maritime lien, save for possessory liens.
A maritime lien is carried into effect by an action “in rem” (against a thing). In other words, a claim against the property, irrespective of its ownership. A practical advantage of an in rem claim is that it confers a right of arrest, enabling security for a claim to be obtained, and it establishes jurisdiction through service of the thing within the jurisdiction.
After acknowledgement of service of an action in rem, the action becomes “in personam” (against the person). It does not shed its in rem character, instead, it evolves into a hybrid action.
Discussion
Regard must be had to the use, and intended use, of the Ship, and the Silver, at the time when the former was carrying the latter.
If the cause of action arose later in time, it would also have been necessary to consider whether there was any change in use, or intended use, in the intervening period.
In at least five ways, actions in rem are far more intrusive into the rights of a state over its property than actions in personam. These are in addition to the jurisdiction enforcement powers of arrest, appraisal and sale.
The Government was immune in respect of an action in rem, and the Silver carried on board the Ship. This is because, at the time that the cause of action arose, the Silver was intended to be used for non-commercial purposes.
Both the use, and the intended use, of the property, by the state, is “highly material” when considering state immunity. “The exercise of jurisdiction by the courts of one state over the property of a foreign state which is in use or intended for use by that foreign state for sovereign purposes may well constitute an impermissible interference with sovereign functions of the foreign state.”
Finally, whether Article 6 of the European Convention of Human Rights (right to a fair and public hearing) is not engaged – because state immunity is required by international law; or it is a justifiable interference – the effect is the same.
State immunity should not be denied to the Government.
Disposal
The appeal would have been allowed, however, the parties settled.
Nevertheless: the parties agreed that judgment should still be handed down; and the court was satisfied that it was appropriate to do so.
Written by Dominic Bright:
WATCH THE UK SUPREME COURT JUDGMENT ON THE REPUBLIC OF SOUTH AFRICA'S CLAIM OF STATE IMMUNITY IN CONNECTION WITH THE SILVER BAR'S SALVAGED BY ARGENTUM EXPLORATION LTD.
BELOW IS THE PRESS SUMMARY, AS WELL AS DETAILED JUDGMENT DOCUMENT.
PRESS SUMMARY
Download PDFJUDGMENT
Download PDFTHE REPUBLIC OF SOUTH AFRICA APPEAL TO THE UK SUPREME COURT!
Hearing start date: 28 November 2023
Hearing finish date: 29 November 2023
ISSUE
Whether the silver and the ship carrying it fell within the following provision of the State Immunity Act 1978 s.10(4)(a): "both the cargo and the ship carrying it were, at the time when the cause of action arose, in use or intended for use for commercial purposes" such that the Republic of South Africa is not immune to the jurisdiction of the United Kingdom in respect of Argentum's salvage claim.
FACTS
This Appeal arises out of the salvage of a cargo of 2364 bars of silver from the wreck of the SS TILAWA, a merchant vessel which was sunk in the Indian Ocean on 23rd November 1942. The silver is, and was at all material times, owned by the Government of the Republic of South Africa ("RSA"). The majority of the silver was intended to be used for the production of coinage for the Union of South Africa. Argentum Exploration Ltd. ("Argentum") claims to have salved the silver in 2017. RSA has applied to strike out Agentum's claim for salvage, on the basis that RSA is immune from the jurisdiction of the United Kingdom under the State Immunity Act 1978.
JUDGMENT APPEALED
PARTIES
APPELLANT(s)
[2022] EWCA Civ 1318 (Click here to read)
PARTIES
Appellant(s): Republic of South Africa
Respondent(s): Argentum Exploration Ltd
APPEAL
Justices: Lord Lloyd-Jones, Lord Briggs, Lord Hamblen, Lord Leggatt, Lord Richards
Hearing start date: 28 November 2023
Hearing finish date: 29 November 2023
Click here to see the official UK Supreme Court website page to this case file.
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A tragedy that cost the lives of hundreds of Indian people
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Dedicated to the missing & surviving victims of the SS Tilawa tragedy.
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