Thanks for all the comments and advice guys! I'm glad I posted this now, I nearly didn't because it's not militaria
Rob, I was speaking to my Granddad last night and it is Patrick Murphy that is the relation, he turns out to be my great great uncle or something along those lines. My aunt apparently has a family tree showing him so I will try and get a copy of that. As far as we know it was not a Royal Navy ship but a merchant vessel of some sort, and he was buried at sea, probably at the coordinates on the letter. Info is very sketchy though so I'd like to fill the gaps, I hope there is something out there about it.
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