It should be added that the flagships were:
Lion.—Battle Cruiser Fleet-Flagship of Vice-Admiral Sir David Beatty.
Princess Royal.—Flagship of Rear-Admiral O. de B. Brock, commanding 1st Battle Cruiser Squadron.
New Zealand.—Flagship of Rear-Admiral W. Pakenham, commanding 2nd Battle Cruiser Squadron.
Barham.—Flagship of Rear-Admiral H. Evan-Thomas, commanding 5th Battle Squadron.
The Engadine, a sea-plane carrier, was stationed between the light cruisers Gloucester and Cordelia, and the light cruiser Yarmouth acted as linking ship between the Lion and the light cruiser screen.
The first report of enemy vessels was received from the Galatea, the flagship of Commodore E. S. Alexander-Sinclair, commanding the 1st Light Cruiser Squadron, who, at 2.20 P.M., sighted two enemy vessels to the E.S.E. apparently stopped and engaged in boarding a neutral steamer. Sir David Beatty, recognising the possibilities of the situation, immediately turned his fleet to the S.S.E., the course for the Horn Reef, so as to get between the enemy and his base.
At 2.35 P.M. the Galatea reported a large amount of smoke “as from a fleet” bearing E.N.E., followed by a report that the vessels were steering north. The course of the Battle Cruiser Fleet was then altered to the eastward and N.E. towards the smoke, the enemy being sighted at 3.31 P.M. and identified as five battle cruisers accompanied by destroyers.
Meanwhile the 1st and 3rd Light Cruiser Squadrons changed their direction, and, judging the situation accurately, spread to the east without waiting for orders, forming a screen in advance of the heavy ships. Our Light Cruisers sighted and engaged enemy vessels of a similar class at long range. The 2nd Light Cruiser Squadron, under Commodore W. E. Goodenough, with his broad pendant in the Southampton, came in at high speed towards the battle cruisers and formed ahead of them on an E.S.E. course, and at 3.30 P.M. sighted enemy battle cruisers bearing E.N.E.
On receipt of the Galatea’s report, Sir David Beatty ordered the Engadine to send up a sea-plane to scout to the N.N.E. This was the first time that sea-planes had been used for reconnaissance work with a fleet in an action, and the event is notable for that reason. The low-lying clouds made observation difficult, but the sea-plane, with Flight-Lieutenant F. S. Rutland, R.N., as pilot, and Assistant Paymaster G. S. Trewin, R.N., as observer, was able, by flying low under the clouds, to identify and report four enemy light cruisers, the report being received on board the Lion at 3.30 P.M. The sea-plane was under heavy fire from the light cruisers during the observation. By this time the line of battle was being formed, the 2nd Battle Cruiser Squadron forming astern of the 1st Battle Cruiser Squadron, with the destroyers of the 9th and 13th Flotillas taking station ahead. The course was E.S.E., slightly converging on the enemy, the speed 25 knots, and the range 23,000 yards. Sir David Beatty formed his ships on a line of bearing in order to clear the smoke.