HMAS Lae was sold for scrapping after being in reserve since 1948. Lae and the former HMAS Labuan left Sydney under tow for Hong Kong on 28 October 1956 carrying a load of scrap metal. On 3 November Lae ran aground on South Percy Island off the coast of Queensland and was abandoned after an attempt to recover her cargo failed.
Australian Naval History on 9 November 1955
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