Australia discovers sunken WWII ship

Australia's greatest military mystery was solved yesterday with the discovery of a World War Two warship which went down with all 645 crew in a fierce battle with a German vessel more than 66 years ago.

A day after searchers located the wreck of the German merchant raider HSK Kormoran off the West Australian coast, Prime Minister Kevin Rudd said they had also found the Australian battlecruiser HMAS Sydney, sunk by the German ship.

Rudd, flanked by top military commanders, said it was "a historic day for all Australians, and a sad day for all Australians".