Rando Bertoia is the last survivor in Scotland of one of the worst maritime disasters of the Second World War - the sinking in 1940 of the Arandora Star, with the loss of more than 700 lives. But he can recall the tragedy as if it happened yesterday.

“I remember it vividly,” Mr Bertoia, 88, of Glasgow, said. “It was our second day on the ship and early that morning we were woken by a thump. We had been torpedoed. I will never forget it - it's like seeing a film.”

The converted liner was deporting more than 1,500 Italian and German internees from Liverpool to Canada. It sunk after it was torpedoed by a German U-boat on July 2, 125 miles (200 kilometres) off the west coast of Ireland; 446 Italians - many of them from Scotland - died.

While the incident remains a painful and all-too-fresh memory for Mr Bertoia and the families of those who died, among others knowledge of the tragic event is fading.

To prevent the disaster becoming little more than a historical footnote, a £1.5million fundraising appeal was begun yesterday to create a memorial garden at St Andrews Cathedral in Glasgow.

Mario Conti, the Archbishop of Glasgow, who is also an immigrant from the Italian town of Barga, said that the garden would act as a place of reflection and mark the bonds of friendship between Scotland and Italy.

“People who suffered the loss of husbands, or fathers, or sons have always carried a sadness over the Arandora Star, but it is not just one of loss, it is also over their rejection from the Scottish community,” said the Archbishop. “The memorial garden will recall events and heal memories by acknowledging that it is alright to remember the past and, as in life in general, rise above it.

“But I would like to think that this is more than one reference to a tragedy. I want it to celebrate the links between Italy and Scotland as the Italian community have made a great contribution to the country.”

The event was attended by Alex Salmond, the First Minister, who said that Scotland's Italian immigrants had helped the country to flourish. “The Italian community is one of the brightest threads in the tartan that makes up our country,” Mr Salmond said. “I believe it is entirely fitting that we should remember those Italians that were taken from their homes, their families and their lives in Scotland when Italy entered the war.”

Yesterday the Archdiocese of Glasgow sent 2,000 letters to Scots Italians all over the country to seek donations for the memorial garden. Plans for the area include a café, exhibition space and meeting rooms, providing new facilities for worshippers, visitors to the cathedral and tourists.

In addition to marking the sinking of the Arandona Star, it is also hoped that the garden will help to allay the concerns of those who believe that British ministers should issue an official apology. Although a German U-boat was responsible for sinking the vessel, campaigners insist that the Government's internment policy was also to blame.

Gabriele Papadia de Bottini, the Consul General for Italy in Scotland, said that the garden was an opportunity to forgive, but not to forget.

“These things happen in war,” he said. “It is a question of having a constructive approach in remembering the tragedy, as it is important to stay in touch with the past.”

Mr Bertoia, who was saved because his bunk on the top deck allowed him to reach a lifeboat, also believes that the memorial will help to make amends.

“People say that it should have been done before, but people always say things like that,” he said. “When we were on our lifeboat we heard the drone of an airplane in the distance. It was British - our enemy - but that didn't matter to us because they threw us foodstuffs.

“When we saw a ship in the distance it was a Canadian destroyer - another enemy - but they were good to us. They hauled us on board and treated us well.

“After I was rescued I was deported for a second time on a ship called the Dunera. We were on board for more than 50 days and the conditions were terrible, but it was not the British Government's policy to ill-treat prisoners.”