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BBC NEWS | World | Asia-Pacific | Australia to probe WWII mystery

A board of inquiry in Australia is to investigate the sinking of a World War II cruiser, following the discovery of its wreckage.

HMAS Sydney came under attack from a much smaller German ship in late 1941.

None of the Sydney's 645 crew survived the attack - making it the country's worst-ever naval disaster.

Australians have long been fascinated by the mystery of how a ship seen as the pride of Australia's navy lost to an auxiliary vessel.

For years theories have abounded - including that a Japanese submarine really sank the Sydney or that the Kormoran's crew machine-gunned down all the Australian survivors.

New hope?

The loss of the Sydney was described by Australian navy chief Vice Adm Russ Shalders as "Australia's major maritime mystery".

But recently there has been renewed hope that this mystery might be solved.

"More than 600 of our nation's finest sailors and airmen lost their lives and we still don't know exactly how Sydney met her end," Acting Prime Minister Julia Gillard said, on announcing the government investigation.

"I hope that through this inquiry we have a better understanding of what happened on that fateful day."

Ms Gillard, who is standing in for Prime Minister Kevin Rudd while he is abroad, announced that former Supreme Court judge Terence Cole, an expert in maritime law, would lead the inquiry.

The Australian government gave AU$4m (£1.9m; 2.5m euros) to the search team - the Finding Sydney Foundation - to fund their efforts to locate the cruiser.

The Sydney was sailing back to Australia from Sumatra on 19 November 1941 when the Kormoran - disguised as a Dutch merchant vessel - launched its attack. Both ships sank as a result of the battle.

All 645 of those on board the Sydney were lost, but 317 of the Kormoran's 397-strong crew managed to escape by rowing to the Australian coast, where they became prisoners-of-war.