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The Karlskrona was the cover name given to a British freighter used to smuggle arms and men to Canada during the Second Great War. The ship purported to be from Sweden, a neutral country. In 1942 she was intercepted and challenged by the USS Josephus Daniels. When Captain Sam Carsten ordered the Karlskrona to heave to for boarding and inspection, her crew unveiled a pair of six inch guns and started firing. While the Josephus Daniels was outgunned with her 4.5 inch guns, her gunnery was superior and after a short, sharp battle the Karlskrona was on fire and sinking. Her captain struck her colors and raised the white flag. Carsten ordered his ship to approach and pick up survivors as the Karlskrona sank.

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