In the midst of these courtesies there came a rude interruption.

The officer of the watch rushed into the ward-room, his face pale with excitement.

"We're trapped, sir!". he exclaimed. "There's a British squadron outside the harbour, and they've spotted us with their searchlights. Signal just come from the flagship demanding our unconditional surrender at daybreak."

[Illustration: CHAPTER XIV]

RUNNING THE GAUNTLET

"DON'T distress yourself, Mr. Sinclair," said Captain Brookes, "it may cause my guests considerable uneasiness. Reply by merely acknowledging the signal; no more. Then report to me the earliest moment at which the ship can be undocked."

When the lieutenant had retired the captain turned to his officers.

"This is a strange business, gentlemen," he remarked, briskly, "though we must be prepared to deal with little unpleasantnesses of this sort. In the first place I did not expect a British squadron in these waters, still less did I think they would worry me with messages of this kind. I can only conclude that a telegraphic message has been sent from Lota or Coronel apprising the fleet of our presence here. In any case they've been mighty smart about it."