The old walls of the city of Callao were destroyed by an earthquake in 1746. In their place three great circular castles were erected, crowned with lofty towers. Between them stretched the batteries of the arsenal and of San Joaquin, mounted with 165 heavy guns, which swept the whole of the roadstead. Under their fire the Spanish squadron lay at anchor, consisting of the Esmeralda and Venganza, 44 gun frigates; the corvette Sebastiana, of 36 guns; the brigs Pezuela, Maipo, and Potrillo, each of 18 guns; the schooner Montezuma, of 7 guns; the Aranzazu of 5 guns; and twenty-six gunboats, besides six armed merchant vessels.
The 28th February was the day fixed upon by Cochrane for the attack; the same Day Pezuela had arranged for a review of the squadron and a sham fight. At daybreak a thick fog covered the bay, and the Viceroy embarked on the brig Maipo, the better to watch the manœuvres. At eleven o’clock, as the fog commenced to lift, the sailors of the Maipo, then near to the island of San Lorenzo, saw a fine ship flying the Spanish flag skirting the sandbank of the Bocanegra. The Viceroy wished to speak her, but the commander of the brig refused to go nearer as he would lose the wind. Pezuela was thus saved from falling a prisoner to Cochrane. The strange ship was the O’Higgins, which sailed on into the bay and captured a gunboat, followed only by the Lautaro, the other two ships being unable to enter the harbour for want of wind.
Favoured by the fog the two ships anchored within range of the batteries, hoisted the Chilian flag, and opened fire, but at nightfall slowly retired, with a few killed and wounded, and some damage to spars and rigging.
The next day the two ships again approached and drove the gunboats under shelter of the batteries, the Spaniards not daring to do more than remain on the defensive when they heard who was in command.
Cochrane had hoped to take the enemy by surprise, but having failed to do so he now tried to repeat his exploit of the Basque Roads, for which purpose he took possession of the island of San Lorenzo, and set to work to make two fire-ships. On the night of the 22nd March he engaged the attention of the batteries with his four ships while one of his fire-ships drifted down on to the Spanish squadron. But the fire-ship ran aground and was struck by a shot from the batteries, when the wind dying away he was forced to leave her to sink.
On the 24th he again attacked, and succeeded in capturing the schooner Montezuma and some merchant vessels and gunboats. The O’Higgins, at some distance from her consorts, was becalmed in a fog, and the Spaniards put off from shore in boats with the intention of boarding her. Fortunately a light wind sprang up before they reached her, and they were seen in time and beaten off.
Cochrane then retired to the neighbouring port of Huacho in search of fresh water, and was there joined by Blanco Encalada with the Galvarino and the Pueyrredon. Leaving the Rear-Admiral with four ships to blockade Callao, Cochrane sailed northwards, distributing proclamations from O’Higgins and San Martin, and also one from himself, among the people along the coast. At one place he landed and captured some brass cannon; then returning to Callao he found that Blanco Encalada had gone south in search of provisions, and seeing nothing more was to be done at present, he followed him.
Cochrane had brought with him from England a mechanic who had worked with Congreve at the Arsenal at Woolwich. He now set him at work to make rockets, and made trial of them in the bay of Valparaiso, expressing himself as perfectly satisfied with them. Government also furnished him with a nine inch mortar which had been sent from Buenos Ayres, and a 28-gun frigate, purchased in the United States and named the Independencia, was added to the squadron. A brigade of 400 marines was also organized under the command of an English officer of experience named Charles, with Major Miller as his second.
The Pueyrredon the Intrepido, and the Montezuma, were sent southward on a cruise in search of some Spanish ships which were reported to be on the way from Europe, and, on the 12th September, Cochrane and Blanco Encalada again sailed from Valparaiso with six ships of war, and two of the transports which had been captured by Blanco Encalada on his first cruise, and which were intended for fire-ships.
Cochrane had such faith in the terrible power of his new rockets that he was confident of success, and wrote to O’Higgins that at eight o’clock on the night of the 24th, the Spanish squadron at Callao would be in flames.