I think this article describes the November 8th incident:
Barrier Miner (paper) NSW Nov 20 1940
http://trove.nla.gov.au/ndp/del/article/48365420
Quote:
WELL TREATED
ITALIANS
LONDON, November 18.-An R.A.F. Sunderland Flying boat came down on the sea in a nasty swell recently to rescue three of the crew of an Italian flying boat which had been shot down. Two Italians were drowned, but a naval sub-lieutenant, a sergeant-major, and a wireless operator scrambled into a collapsible dinghy, which quickly developed a leak. A rope was thrown to the Italians from the Sunderland, and they were hauled on board and given hot food and dry clothes.
When landed the prisoners expressed gratitude for the chivalrous manner in which they had been treated. The officer said they had seen for themselves the truth of the frequent statement that the British treated prisoners well. Referring to the destruction of his aircraft, he said: "It was all so sudden. The British machine gun fire was overwhelming."
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Unfortunately no further details on the Sunderland Squadron