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I am fairly Union-Castleish and have heard this before.
The hull colour we knew as Lavender Grey. I know of others who have called it London Grey. At the time I was with them I never heard it described as Mountbatten Pink but then if the story is true then I would guess that it was only named thus in the RN as U-C already had their own name for the colour.
The slight doubts I have about the story are that by the time ships were sailing in convoys they were no longer in company colours. Also Union-Castle ships were not often in convoys as their speed was their protection.
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