The sinking of the unarmed World War II hospital ship Centaur and the courage and sacrifice of those on board showed the best and worst of humanity, Prime Minister Kevin Rudd has told a national memorial service.
Mr Rudd joined more than 600 people at St John's Cathedral in Brisbane for a service to commemorate the Centaur on Tuesday.
The hospital ship was torpedoed by a Japanese submarine 48km off the southeast Queensland coast in May 1943.
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Of the 332 people on board, only 64 survived.
Shipwreck 'hunter' finds wreck
The ship was found by shipwreck hunter David Mearns in December and is now surrounded by a 200-hectare protection zone to stop souvenir hunters.
"Today we honour courage, today we honour sacrifice, today we honour passion," Mr Rudd told the congregation, standing in front of the Australian flag, the Red Ensign and the International Red Cross flag.
"These are the noblest of human values, these are the noblest of Australian values.
"For this is the story of the Centaur, which must be told as it shows the best of humanity and the worst of humanity at work."
Mr Rudd said the ship's bell, a boot, a slouch hat and a cross designating a hospital ship, now lying at the bottom of Moreton Bay but captured on video by the shipwreck finders, were "silent, eloquent and permanent" reminders of the tragedy.
'Violation of international law'
"Let us be clear - sinking an unarmed hospital ship is a violation of international law, no ifs, no buts, no maybes. It's also a violation of human decency," he said.
"It was a vessel of mercy sunk without mercy."
Survivor Martin Pash tearfully told the congregation he was 20 when the boat was attacked.
"At about 4.10am on May 14 we were torpedoed by a Japanese submarine," he said.
Shark-infested waters
"I managed to get on to a life raft with 11 survivors, one being Sister Ellen Savage.
"After 32 harrowing hours drifting in shark-infested water we were picked up by the American destroyer Mugford."
Premier Anna Bligh told the congregation the ceremony was a day of remembrance and to give gratitude to those who died on board, some of whom were as young as 15.
She also praised the efforts of the 2/3 AHS Centaur Association, which pushed for government funding for the search efforts.
"Now you have the comfort and knowledge of knowing where your loved ones lie," Ms Bligh said.
Dignitaries show for ceremony
Governor-General Quentin Bryce and Queensland Governor Penelope Wensley read prayers and joined Mr Rudd, Ms Bligh and Mr Pash in the laying of wreaths.
Before the ceremony students from the Centaur Primary School, at Banora Point, read out the names of those who lost their lives in the disaster, and handed out flowers.
Representatives from a number of faiths attended the service, which was opened by Anglican Primate Phillip Aspinall.

