My sailing instructor many years ago on Sydney Harbour taught me an important right of way rule, "assume everyone else on the water is a complete ass and you will never have a colliison".
Now I'm not going to get into the right and wrong of not reporting other than to say that on Sydney harbour If I called the 'authorities' everytime I witnessed a breach of maritime law I would have the guys on permanent speed dial.
'Life is either a daring adventure or nothing' - Helen Keller
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